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Bank Nifty index had ended in the positive territory on Monday on continued foreign inflows amid a strong rupee. Bank Nifty July futures contract had ended higher by 126.90 points at 27,055.80,while the underlying value of the contract closed at 27,008.15.
Active Call Options of July 26 expiry
Among the call option chain, the In-The-Money Bank Nifty Call 26,900 option was the actively traded contract on Monday. The option price ended higher by 17.35 per cent at Rs 234.75.
Open interest in the contract increased by 22.80 per cent which confirms that traders have taken fresh positions in the contract. The implied volatility was significantly higher at 16.56 per cent. It is an indication that the underlying Bank Nifty is likely to face stiff resistance around 27,100 levels in the short-term.
The Bank Nifty Call 27,400 option contract is currently an Out-Of-The-Money option. The option price ended lower by 12.80 per cent at Rs 34.70. OI increased by 31.50 per cent with the IV at 15.65 per cent.
IV of the option price was higher as the option price looked cheaper. Since there was a sizeable addition of open interest here, it confirms that the underlying Bank Nifty may encounter resistance around 27 400 levels in case it move above 27,100 levels.
Active Put Options of July 26 expiry
On the put option chain, the In-The-Money Bank Nifty Put 27,100 was the most actively traded contract. OI jumped 30.80 per cent, while the put option price ended down by 40.15 per cent at Rs 160.75.
The implied volatility was comparatively lower at 12.55 per cent. This confirms that the underlying Bank Nifty is likely to get support around 26,900 levels in the short-term.
The Out-Of-The-Money Bank Nifty Put 26,800 contract saw large buying interest in Monday’s trading session. This put option price declined 59.10 per cent to close at Rs 52, while OI rose sharply 100.60 per cent.
The implied volatility of the option price was at 14.15 per cent indicating that the underlying is likely to get support around 26,850-26,900 levels this month.
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