Banking indices weakened on Thursday as rate hike prospects by the Federal Reserve weighed on investor sentiment. Bank Nifty August futures contract ended lower by 167.35 points at 28,112. The underlying value of the contract closed at 28,027.90.
Active Call Options of August 30 expiry
Among the call option chain, the In-The-Money Bank Nifty Call 28,000 option traded very active on Thursday. The option price was down 37.40 per cent at Rs 242. Open interest too jumped 16.20 per cent.
Traders have taken fresh positions in the contract as the underlying declined yesterday. There was also good demand for the option as the implied volatility was at 12.85 per cent. It is an indication that the Bank Nifty may encounter stiff resistance around 28,250-28,300 level in this expiry.
The Bank Nifty Call 28,300 option contract is currently an Out-Of-The-Money option that turned active. The option price closed lower by 51 per cent at Rs 99.20 on Thursday.
OI surged 208.50 per cent. The IV was comparatively higher at 12.10%. This confirms that the Bank Nifty may face strong resistance around 28,300-28,400 levels.
Active Put Options of August 30 expiry
On the put option chain, the In-The-Money Bank Nifty Put 28,300 option contract was the most actively traded contract on Thursday. The put option price closed higher by 24.55 per cent at Rs 273.20.
OI went up 28 per cent with the implied volatility at 8.90 per cent. This implies that the underlying Bank Nifty is likely to get traction around 28,000 levels for this expiry.
The Out-Of-The-Money Bank Nifty Put 27,900 contract witnessed substantial interest in Thursday’s trading session. This put option price ended up 11.20 per cent at Rs 96.65, while OI saw 74.30 per cent increase.
The implied volatility of the option price was at 11.15 per cent. This indicates that the Bank Nifty is likely to get support around 27,900 levels in the short-term.