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Monday, June 5, 2023

Derivatives update

*Derivatives update*

Good morning !! 
Derivatives update for Monday, 5th June 2023.

India VIX was down by 4.09% from 11.59 to 11.12 levels. Volatility has been cooling off and thus in turn creating swings within a smaller range in the indices making it choppy for most part of the session.

Nifty *Put/Call Ratio* (OI) decreased from 1 to 0.95 level. 

On option front, weekly Maximum Call OI is at 18600 then 18500 strike while Maximum Put OI is at 18500 then 18400 strike. Call writing is seen at 18600 then 18800 strike while Put writing is seen at 18500 then 18300 strike.

*Option data suggests a broader trading range in between 18200 to 18800 zones while an immediate trading range in between 18300 to 18700 zones.*

For weekly Bank Nifty, Maximum Put OI is at 44000 then 43000 strike and maximum Call OI is placed at 44000 then 46000 strike. We have seen Call writing 46000 and Put writing is witnessed at 41500 strike. 

Bank Nifty Put Call Ratio increased from 0.76 to 0.80. Implied volatility fell from 14.3 to 12.7 levels.

Bank Nifty (CMP 43,937.85)
Data setup for Bank Nifty suggests a trading range in between *43500/43750 to 44250/44500 zones.*

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

In the cash market, FIIs were net sellers to the tune of 658 crores while DII’s were net buyers worth 582 crores. FIIs Index Long Short Ratio increased to 47.55%.

Derivatives data and price set up suggests, Nifty has to hold support of 18442 zones to witness an up move towards 18666 and 18750 zones while on the downside support exists at 18442 and 18333 zones.

Bank Nifty has to cross and hold above 44044 for an up move towards 44250 then 44500 zones while on the downside support exists at 43750 and 43500 zones.

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

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