Stock markets witnessed selling pressure on Wednesday on foreign outflows amidst weaker rupee. Investors have turned extremely cautious as international trade conflicts weighed heavily against any fresh commitments.
Yesterday, the Bank Nifty September futures contract declined 114.45 points and closed at 27,501 while the underlying value of the contract closed at 27,376.05.
Active Call Options of Sept 6 expiry
Among the call option chain the In The money Bank Nifty Call 27300 option was the actively traded contract on Wednesday. The option price was down 49.80 per cent and closed at Rs 135.05. There was a huge addition of OI in the contract to an extent of 2.39 lakh shares (an increase of 1,570 per cent). The implied volatility was significantly higher at 15.24 per cent. It is an indication that the underlying Bank Nifty is likely to witness a pull back rally on the last day of this weekly expiry.
The Bank Nifty Call 27600 option contract is currently an out-of-the-money option. The option price declined 76.40 per cent and closed at Rs 20 on Wednesday. The OI in the contract has increased by 131.80 per cent with the IV higher at 15.60 per cent. Since there was a sizeable addition of OI here, it confirms that the underlying Bank Nifty is likely to see a pull-back move.
Active Put Options of Sept 6 expiry
On the put option chain, on Wednesday the in-the-money Bank Nifty Put 27500 was the most actively traded contract. The put option price had gained 31.15 per cent and closed at Rs 146.45. However, the OI in the contract was down by 48.30 per cent. The implied volatility was comparatively lower at 12.90 per cent. Since nearly half of the open positions were shed in the contract, the underlying Bank Nifty is likely to get support around 27300 levels.
The out-of-the-money Bank Nifty Put 27200 contract saw large buying interest in Wednesday’s trading session. This put option price has declined 30.55 per cent and closed at Rs 24.90. The OI in the contract saw an addition of 3.07 lakh shares, up by 69.75 per cent, . The implied volatility of the option price was comparatively higher at 15.40 per cent indicating that the underlying is likely to get support around 27200 levels in the expiry.