Investors’ sentiment was badly hit on Thursday following the RBI’s repo rate hike announcement amidst fears of an escalating trade dispute between the United States and China.

Bank Nifty index had declined 240 points to 27,355.95 on Thursday. August derivatives too lost 235.20 points to 27,437.

Active Call options of Aug 9 expiry

Among the call options for the August 9 expiry, the most active in-the-money call option was 27,300-call. The option price ended at Rs 243.80, down Rs 126.25 or 34.10 per cent.

There was a huge build-up in open interest in this contract.OI 3,980 per cent. The Implied Volatility of the option price was comparatively higher at 12.25 per cent compared to the August 30 expiry. It indicates the underlying Bank Nifty is likely to encounter resistance around 27,600-27,650 levels.

The out-of the-money 27,700-call traded very active. The option price ended at Rs 64.05, down 66 per cent. Interestingly, open interest in the contract zoomed 951 per cent.

The IV of the option price was at 11.30 per cent. With the addition of OI in this call option, the underlying Bank Nifty is likely to encounter resistance around 27,700 levels in case of an upside.

Active Put Options of Aug 9 expiry

In the put options side, the 27,500 in-the-money put was active on Thursday. The option price gained Rs 74.90 or 53.39 per cent to close at Rs 215.20. OI, too, jumped 57.38 per cent.

The IV of the option price was comparatively lower at 10.93 per cent. This signifies that the Bank Nifty index is likely to get support around 27,300 levels in a short time-frame.

The 27,200 out-of-the money put contract had turned active on Thursday. The option price was up 50.60 per cent at Rs 97. OI surged 750.45 per cent with the IV of the option price higher at 12.12 per cent indicating that the option price was in good demand.

Since there was significant addition of OI here, the underlying Bank Nifty index is likely get support around 27,200-27,300 levels in this expiry.

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