Positive action likely on weekly expiry. What should Nifty traders do?
Nifty's weekly series expires today, it was marked with long additions with an increase in price of 3.66% and increase in open interest (OI) by 8.12% where 8.61 lakh shares were added in OI, increasing from 106.06 lakh to 114.67 lakh shares as on Wednesday.
The Nifty September series rollover stands at 12% with sentiment indicator Nifty Put Call Ratio (PCR) currently at 1.25, indicating a flat-to-positive movement for expiry.
As for the Bank Nifty which had a weekly expiry on Wednesday, the series witnessed short covering with an increase in price of 3.87% and decrease in OI by 16% where there was shedding of over 4 lakh shares in OI, decreasing from 25.17 lakh to 21.15 lakh shares. The Bank Nifty August series rollover stands at 17%.
Implied Volatility of Nifty ATM options for the current series is at 12.48%, while India Vix is at 11.63% both indicating a slightly higher Volatile movement on either side in expiry session compared to last weekly expiry, analyst Rajesh Palviya, Senior Vice President, Technical and Derivatives Research at Axis Securities said.
Palviya said that the Nifty Put options OI distribution shows that 20,000 has highest OI concentration followed by 19,900 and 19,800 which may act as support for today's expiry and on the Call front 20,100 followed by 20,200 and 20,300 witnessed significant OI concentration and may act as resistance.
