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Tuesday, April 25, 2023

Derivatives update 25/04/2023

*Derivatives update*

Good morning !!
Tuesday, 25th April 2023.

India VIX was up by 0.32% from 11.63 to 11.66 levels. Volatility spiked above 12 zones but later sunk and has overall has dried up to consistently hover at its lower zones.

Nifty *Put/Call Ratio* (OI) increased from 0.93 to 1.13 level. 

On Option front, Maximum Call OI is at 18000 then 17800 strike while Maximum Put OI is at 17700 then 17600 strike. Minor Call writing is seen at 17800 then 17900 strike while Put writing is seen at 17700 then 17600 strike.

*Option data suggests a shift in trading range in between 17500 to 18000 zones while an immediate trading range in between 17600 to 17900 zones*

For weekly Bank Nifty, Maximum Put OI is at 42500 then 42000 strike and maximum Call OI is placed at 44000 then 43000 strike. We have seen Call writing 42700 with unwinding at 42300 and significant Put writing is witnessed at 42500 strike. 

Bank Nifty Put Call Ratio increased from 0.78 to 1.25. Implied volatility rose from 13.2 to 13.8 levels.

Bank Nifty (CMP 42,635.75)
Data setup for Bank Nifty suggests a trading range in between *42000/42250 to 43000/43200 zones.*

Looking ahead at the FII’s derivatives activity, there was long built up in index futures, call selling and put buying in index options and short built up in stock futures.

In the cash market, FIIs were net sellers to the tune of 412 crores while DII’s were net buyers worth 1177 crores. FIIs Index Long Short Ratio increased to 43.79%.

Derivatives data and price set up suggests, Nifty needs to hold above 17717 zones to witness an up move towards 17777 and 17850 zones while on the downside supports are placed at 17620 and 17550 marks.

Bank Nifty has to hold above 42500 zones for an up move towards 43000 then 43200 levels while on the downside support shift higher 42250 then 42000 zones.

Thank you. Have a great trading day ahead..!!

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