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Thursday, May 25, 2023

Derivatives update 25 May 2023

*Derivatives update*

Good morning !! Derivatives update for Thursday, 25th May 2023.

India VIX was up by 4.07% from 12.60 to 13.11 levels. Volatility has been rising from the last three sessions and causing swings in the market.

Nifty *Put/Call Ratio* (OI) decreased from 1.20 to 1.01 level. 

On Option front, monthly maximum Call OI is at 18400 then 18500 strike while maximum Put OI is at 18300 then 18200 strike. Call writing is seen at 18400 then 18300 strike while Put writing is seen at 18200 then 18300 strike.

*Option data suggests an immediate trading range in between 18150 to 18400 zones.*

For weekly Bank Nifty, Maximum Put OI is at 43500 then 43000 strike and maximum Call OI is placed at 44000 then 45000 strike. We have seen significant Call writing 43900 and Put writing is witnessed at 43500 and unwinding at 44000 strike. 

Bank Nifty Put Call Ratio decreased from 0.98 to 0.76 Implied volatility rose from 14.02 to 14.04 levels.

Bank Nifty (CMP 43,677.85)
Data setup for Bank Nifty suggests a trading range in between *43333/43500 to 44144/44250 zones.*

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

In the cash market, FIIs were net buyers to the tune of 1186 crores while DII’s were net buyers worth 301 crores. FIIs Index Long Short Ratio decreased to 49.12%.

Derivatives data and price set up suggests, Nifty has to hold above 18281 zones, for a bounce towards 18400 and 18442 zones while on the downside support exists at 18181 and 18081 zones.

Bank Nifty has to hold above 43750 zones for a bounce towards 44144 then 44250 zones while a hold below the same could see some weakness towards 43500 then 43333 marks.

Thank you. Have a great trading day and monthly expiry ahead..!!

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