Benchmark indices fell on Monday tracking weak global markets as continuing trade tension between the US and other world economies dampened the sentiment. The Bank Nifty June futures ended lower on Monday to end at 26,604.20. In line with the downtrend, the Nifty Private Bank index declined 100 points to close at 15105.70, while the Nifty PSU Bank index was down 61.55 points and ended at 2886.75.

Active call options of June 28 expiry

Among the call option chain the In-The-money Bank Nifty Call 26500 option turned very active on Monday. The option price closed at Rs 201.70, down by Rs 139.40 or 40.80%. However, the OI in the contract had declined 7.25 per cent. Traders have shed some of their long positions in the contract as the contract is expiring by this Thursday. The implied volatility was seen at 13 per cent, which denotes that there is lesser demand for the option at this price. Hence, the underlying Bank Nifty may decline to these levels in the short term.

The Bank Nifty Call 26800 option contract is currently an Out Of The Money option that was very active on Monday. The contract price was down 55 per cent to end at Rs 70. However, the OI rose sharply by 109.69 per cent with the fall in the option price. The IV of the option price was higher at 14.40 per cent which signifies that this option has attracted reasonable buying interest. Going by the options movement, it is expected that the Bank Nifty may encounter stiff resistance around 26900 levels in case of an upside.

Active put options of June 28 expiry

On the put option chain, the in the money Bank Nifty Put 26800 option contract was the most actively traded contract on Monday. The put option price gained         Rs 95 or 59.10 per cent to close at Rs 258. However, the OI was seen shed by 12 per cent for this contract. The implied volatility was comparatively higher at 16.55 per cent which implies that this contract price was expensive. Continuing with the downtrend, the underlying Bank Nifty may decline below 26500 levels before the expiry.

 

The Bank Nifty Out-of the-money Put 26,400 strike price was more active on Monday. This out of the money put option contract was up 37 per cent to end at Rs 65.25. The OI in the counter gained 14.25 per cent. The IV of the option price was relatively higher at 16.25 per cent. Traders have taken fresh positions in this contract. Hence, the Bank Nifty underlying may get support around 26400 levels.

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