Bank Nifty index wobbled on Monday as investors eyed IIP and inflation data that are expected to be released later in the day. Also, investors were keenly monitoring developments around the historic US-North Korea summit in Singapore.

The Bank Nifty June futures contract has ended marginally higher by 51 points at 26,489. The underlying value of the contract closed at 26,453.55.

Call Option for the June 28 expiry

Among the call option chain the In-The-Money Bank Nifty Call 26300 option was the actively traded contract. The option price was up 5 per cent to close at ₹441.30 on Monday. However, the OI in the contract was shed 12.75 per cent. This confirms that traders are pruning their positions in the contract despite an increase in the option price. There was also lower demand for the option as the implied volatility is comparatively lower at 12.46%. It is an indication that the Bank Nifty may decline below this call strike price in the short-term.

The Bank Nifty Call 26,700 option contract is currently an out-of-the-Money option. The option price edged up by 2.40 per cent at Rs 234. The OI in the contract edged lower by 3.85 per cent with the IV was only at 12.75 per cent that indicates lack of buying interest. Hence, the Bank Nifty may encounter resistance around 26700 levels in case of an upside.

Put Option for the June 28 expiry

On the put option chain, the in-the-money Bank Nifty Put 26,600 option contract saw     moderate increase in the open interest on Monday. The put option price was down 8.35 per cent to close at Rs 391.75 whereas the OI has gone up by 16.65 per cent for this contract. The implied volatility was at 16.70 per cent. This confirms that the underlying Bank Nifty may not rise above this level in the short-term.

The out-of-the-money Bank Nifty Put 26,100 contract saw moderate interest in Monday’s trading session. This put option price declined 11.80 per cent to Rs 193.35 while the OI rose by 6.80 per cent. The option price has turned costlier with the implied volatility at 17.05%. This indicates that the Bank Nifty is likely to decline to these levels before the expiry.