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Bank Nifty continued its upward journey on Monday on the back of sustained buying by domestic funds and investors mainly driven by strong corporate earnings. Traders were keeping an eye on RBI policy meet.
Bank Nifty August contract had ended higher by 215.15 points at 27,854.60. Nifty Private Bank index too ended up 118 points at 15,666.45, while the Nifty PSU Bank index also ended higher by 133 points at 3,226.70.
Active call options of August 30 expiry
Among the call option chain, the In-The-money Bank Nifty Call 27,800 option was the actively traded contract on Monday. The option price closed at Rs 448.40, up by 27.25 per cent. Open interest in the contract increased 84.75 per cent.
Traders have taken fresh long positions in the contract on hopes that the underlying index would rally further. The implied volatility was seen at 8.96 per cent. This confirms that the underlying Bank Nifty may encounter resistance around 28,150-28,200 levels for the expiry.
The Bank Nifty Call 28,100 option contract is currently an Out-Of-The-Money option that turned very active on Monday. The contract price jumped 30.15 per cent to Rs 299.95. OI saw 200 per cent increase in Monday’s trading session. The IV of the option price was at 9.55 per cent. This indicates that the underlying Bank Nifty is likely to meet strong resistance around 28,350 levels for the expiry.
Active put options of August 30 expiry
On the put option chain, the In-The-Money Bank Nifty Put 28,000 was the most actively traded contract on Monday. The option price was down 20.40 per cent at Rs 493.30. However, OI jumped 200 per cent.
The implied volatility was comparatively higher at 16.45 per cent which implies that this contract price was in keen demand. This confirms that the underlying index is likely to get traction around 27,500 levels in case of a decline.
The Bank Nifty Out-Of-The-Money Put 27,700 strike price was one of the most actively traded contracts on Monday. The option price fell 21.25 per cent to Rs 363. OI zoomed 718 per cent.
The IV of the option price was comparatively higher at 16.50 per cent which suggests that some traders expect the underlying to decline. This implies that the Bank Nifty underlying is likely to get support around 27,300 levels for the expiry in case it breaches 27,500 levels.
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