Derivatives View (June 12): Sell Bank Nifty in range of 19950-20000 - ICICI Securities

Nifty

The Nifty opened lower and remained negative throughout the day on the back of weak global cues. The index ended with a loss of 2% at 9902. It has broken out from 300-point consolidation that was seen in last six trading sessions. From the option space, aggressive Call writing was seen in 10000 to10300 strikes, which is likely to keep the index under pressure. Nifty futures ended at a discount of 7 points with a rise in IVs by 0.74%. The major Put base is at 9800 strike with almost 8 lakh shares while the major Call base is at the 10100 strike with almost 10 lakh shares.

Bank Nifty

Post a negative opening, the index remained sideways for a major part of the day. In the second half, intense selling was seen in HDFC Bank, Kotak Mahindra Bank and SBI, which led the index to drift lower below 20500. If the Bank Nifty is unable to hold 20000, which has significant OI, then further downside can be seen in coming days.

Daily Index F&O recommendations

1. Sell Nifty 10000 Call (June 18 expiry) in the range of Rs. 70-72
2. Sell Bank Nifty in the range of 19950-20000

For details, click on the link below: https://www.icicidirect.com/mailimages/Derivatives_view.pdf

Source : Equity Bulls

Keywords