Derivatives update

*Derivatives update*

 Derivatives update for Friday, 19 May 2023.

India VIX was down by 2.33% from 13.10 to 12.79 levels. Volatility had sunk in the initial tick but later spiked and caused swings in the market.

Nifty *Put/Call Ratio* (OI) increased from 0.83 to 0.93 level. 

On Option front, monthly Maximum Call OI is at 18200 then 18300 strike while Maximum Put OI is at 18200 then 18000 strike. Call writing is seen at 18200 then 18300 strike while minor Put writing is seen at 18100 then 18000 strike.

*Option data suggests a broader trading range in between 17900 to 18400 zones while an immediate trading range in between 18000 to 18300 zones.*

For weekly Bank Nifty, Maximum Put OI is at 42000 then 43000 strike and maximum Call OI is placed at 44000 then 44500 strike. We have seen Call writing 44000 and Put writing is witnessed at 40000 strike. 

Bank Nifty Put Call Ratio increased from 0.83 to 1.01 Implied volatility fell from 14.6 to 14.4 levels.

Bank Nifty (CMP 43,752)

Data setup for Bank Nifty suggests a trading range in between *43333/43500 to 44000/44144 zones.*

Looking ahead at the FII’s derivatives activity, there was long built up in index futures, position unwinding in index options and short built up in stock futures.

In the cash market, FIIs were net buyers to the tune of 970 crores while DII’s were net sellers worth 850 crores. FIIs Index Long Short Ratio increased to 49.06%.

Derivatives data and price set up suggests, till Nifty holds below 18181 zones, some more profit booking could be seen towards 18081 and 18018 zones while on the upside hurdle exists at 18218 and 18333 marks.

Till Bank Nifty holds below 44000 zones, bounce could be sold for some weakness towards 43500 then 43333 levels while on the upside hurdle is seen at 44000 then 44144 marks.

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