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Monday, April 24, 2023

Derivatives update

*Derivatives update*

Good morning !!
Derivatives update for Monday, 24th April 2023.

India VIX was down by 2.60% from 11.94 to 11.63 levels. Volatility has sunk and overall has dried up and consistently hovering at its lower zones.

Nifty *Put/Call Ratio* (OI) decreased from 1.01 to 0.93 level. 

On Option front, Maximum Call OI is at 17700 then 18000 strike while Maximum Put OI is at 17700 then 17500 strike. Call writing is seen at 17700 then 17900 strike while Put writing is seen at 17600 then 17500 strike.

*Option data suggests a shift in trading range in between 17400 to 18000 zones while an immediate trading range in between 17500 to 17750 zones.*

For weekly Bank Nifty, Maximum Put OI is at 42000 then 41000 strike and maximum Call OI is placed at 42500 then 42000 strike. We have seen significant Call writing at 44500 and Put writing is witnessed at 42000 strike. 

Bank Nifty Put Call Ratio decreased from 1.03 to 0.78. Implied volatility fell from 13.6 to 13.2 levels.

Bank Nifty (CMP 42,118)
Data setup for Bank Nifty suggests a trading range in between *41600/41750 to 42500/42750 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 position unwinding in stock futures.

In the cash market, FIIs were net sellers to the tune of 2117 crores while DII’s were net buyers worth 1633 crores. FIIs Index Long Short Ratio increased to 39.31%.

Derivatives data and price set up suggests, Nifty needs to hold above 17620 zones to witness an up move towards 17717 and 17777 zones while on the downside supports are placed at 17550 and 17442 marks.

Bank Nifty has hold above 42000 zones for an up move towards 42500 then 42750 levels while on the downside support are seen at 41750 then 41600 zones.

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

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