Selling continued in Nifty stocks for the sixth straight session on the back of weak global cues amid high volatility. All sectoral indices ended in the red while IV rose almost 10% to 23.5. On the weekly options front, aggressive writing was seen in the strike of 11000 Call. It suggests that as long as it trades below 11000 the bias will remain negative. Nifty futures ended at a premium of 5 points while IV rose 10%. The major Put base is at the 10900 strike with almost 12 lakh shares while the major Call base is at the 11000 strike with almost 20 lakh shares.
Selling continued in the banking space, which dragged the index lower to 20500. Selling was seen in SBI, IndusInd Bank, Axis Bank and HDFC Bank. Looking at weekly options data, we feel the index may take support at 20000, as it has significant OI in 20000 Put. However, aggressive additions in the strikes of 21000 and 21500 Call may act as immediate hurdles on upsides. Thus, it may trade in the range of 20000-21000 for a couple of trading sessions.
Daily Index F&O recommendations
1. Sell Nifty 11100 Call (October 1 expiry) in the range of Rs. 40-42
2. Sell Bank Nifty in the range of 20650-20750
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