The Bank Nifty index had ended sharply higher on Monday on fresh buying by domestic institutions and investors on hopes of easing trade tensions between the US and China.
The Bank Nifty index ended higher by 145.70 points at 28,274.25, while the Bank Nifty August futures contract closed stronger at 28,320.70.
Active Call Options of August 30 expiry
Among the call option chain, the In-The-Money Bank Nifty Call 28,200 option was the actively traded contract on Monday. The option price closed up 26 per cent at Rs 297.35.
Open interest in the contract fell 11.80 per cent which confirms that traders have cut their open positions in the contract. The implied volatility was at 11.45 per cent. It is an indication that the underlying Bank Nifty is likely to face resistance around 28,500 levels.
The Bank Nifty Call 28,300 option contract is currently an Out-Of-The-Money option that traded active on Monday. The option price gained 27.40 per cent to Rs 241.30.
OI rose 27 per cent with the IV at 11.50 per cent. It implies that the underlying Bank Nifty may encounter resistance around 28,550 levels in case of any volatility.
Active Put Options of August 30 expiry
On the put option chain, the In-The-Money Bank Nifty Put 28,300 option contract saw maximum addition of fresh positions. OI rose sharply by 215.30 per cent.
The put option price was down 28.70 per cent at Rs 219.85. The implied volatility was relatively higher at 13.15 per cent. This confirms that the underlying Bank Nifty is likely to get support around 28,100 levels in the short-term.
The Out-Of-The-Money Bank Nifty Put 28,000 contract saw good buying interest in Monday’s trading session. This put option price declined by 34.75 per cent to Rs 118.20.
However, OI increased by 30 per cent. The implied volatility of the option price was comparatively higher at 13.80 per cent indicating that the underlying contract is likely to get support around 28,000 levels.
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