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Banking stocks outperformed other sectors, with shares of the leading banks made sharp gains on Thursday. While Nifty banking index was up nearly 1 per cent, the public sector banking index was up 3 per cent and the Nifty Pvt Bank index ended higher by 1 per cent.
On Thursday, the Bank Nifty August futures contract has ended higher by 217.55 points to 28345 while the underlying value of the contract closed at 28320.
Active Call Options of August 16 expiry
Among the call option chain, the in-the-money Bank Nifty Call 28200 option was the actively traded contract on Thursday. The option price went up by 66.60 per cent to Rs 229.50. The Open Interest in the contract has increased 302 per cent which indicates that traders have taken fresh positions in the contract. The implied volatility of the option price was at 7.90 per cent. This confirms that the underlying Bank Nifty is likely to face resistance around 28400 levels for the expiry.
The Bank Nifty Call 28500 option contract is currently an out of the Money option. The option price gained 96.10 per cent and closed at Rs 96 on Thursday. The OI in the contract rose 104.65 per cent. The IV of the option price was at 9.60 per cent implying it was not too expensive. Hence, the underlying Bank Nifty may encounter stiff resistance around 28400-28500 levels if the rally continues further.
Active Put Options of August 16 expiry
On the put option chain, on Thursday the in-the-money Bank Nifty Put 28500 option contract saw maximum addition of contract positions for this weekly expiry. While the OI has sharply increased by 2,861per cent, the put option price was down 40.55 per cent and closed at Rs 264. The implied volatility was comparatively higher at 12.40 per cent. Hence, there is likelihood that the underlying Bank Nifty may get support around 28200 levels.
The out of the money Bank Nifty Put 28200 contract saw heavy buying interest in Thursday’s trading session for this weekly expiry. Though, the put option price had declined by 50.45 per cent to Rs 113.85, the OI, in the contract has surged by 3,195 per cent, surprisingly.
The implied volatility of the option price was higher at 12 per cent indicating that the underlying is likely to get support around 28100 levels for the expiry in case of a decline.
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