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Bank Nifty index had ended in the negative zone on Thursday due to profit-booking by funds and retail investors owing to August month derivatives expiry.
Yesterday, the Bank Nifty index had ended lower by 120.85 points at 28,103.25, while the Bank Nifty August futures contract closed at 28,105.50.
Active Call Options of Sept 6 expiry
Among the call option chain, the In-The-Money Bank Nifty Call 28,000 option was the actively traded contract on Thursday. The option price ended lower by 29.70 per cent at Rs 263.
Open interest in the contract surged 175 per cent which confirms that traders have taken fresh positions in the contract. The implied volatility was at 11.20 per cent. In case of an upside, the underlying Bank Nifty is likely to face strong resistance around 28,300 levels.
The Bank Nifty Call 28,300 option contract is currently an Out-Of-The Money option that traded active on Thursday. The option price declined 44.85 per cent to Rs 106.
However, OI climbed 288.30 per cent with the implied volatility at 11.05 per cent. This confirms that the underlying Bank Nifty may encounter resistance around 28,300-28,350 levels in case of any volatility before this expiry.
Active Put Options of Sept 6 expiry
On the put option chain, the In-The-Money Bank Nifty Put 28,200 option contract saw maximum addition of fresh positions. OI rose sharply by 39.90 per cent. The put option price too was up 17 per cent at Rs 180.
The implied volatility was relatively lower at 10.15 per cent. This confirms that the underlying Bank Nifty is likely to get support around 28,000 levels in the next few trading sessions.
The Out-Of-The-Money Bank Nifty Put 27,900 contract saw large buying interest on Thursday. This put option price edged lower by 3 per cent to Rs 73.60.
Interestingly, OI soared 435.50 per cent implying huge long build-up of positions. The implied volatility of the option price was at 11.15 per cent indicating that the underlying is likely to get support around 27,800-27,900 levels in this expiry.
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