Derivative View for Weekly Expiry – Aug 18, 2021
August 18 2021 | Reading Time: 5 Minutes
Indian benchmark indices may open on a positive note today. At 8:15 am IST, SGX Nifty Futures was trading at 16,648, compared with Nifty’s close of 16,615 yesterday, indicating a positive opening for the bourses.
Nifty Futures – LTP 16,596
Nifty scaled into new highs on Tuesday, extending the rally to seventh consecutive sessions. Nifty has been trading in higher highs higher lows price formation from the last four trading sessions with bullish momentum. Strong buying in IT and FMCG stocks lifted the index to 16,600 from 16,300 levels.
On the options data front, PCR for weekly contracts expiring August 18 stands at 1.77. From the OI data perspective for weekly contracts expiring August 18, maximum Call OI built up was seen for 16,700 strike price, followed by 16,800 strike price, which amounts to 88.95 lakh contracts and 82.44 lakh contracts, respectively. Likewise, maximum Put OI built up was seen for 16,500 strike price, followed by 16,000 strike price, which amounts to 148.25 lakh contracts and 134.27 lakh contracts, respectively. The volatility index, India Vix, cooled down to 12.71.
After considering the above technical and options data, the index is in a bullish trend and we recommend ‘buy on dips’ strategy. However, we expect the index to witness some profit booking at higher levels around 16,700–16,750 levels.
BankNifty Futures: LTP – 35,937
Bank Nifty continues to trade in a consolidation zone from the last 11 weeks and underperformed. Yesterday, it opened on a negative note and made a low of 35,600. However, it sharply bounced back from the lows and closed near 35,867. It formed a hammer candlestick pattern at its support level.
On the options data front, PCR for contracts expiring August 18 stands at 0.96. From the OI data perspective for weekly contracts expiring on August 18, maximum Call OI built up was seen for 36,000 strike price, followed by 36,200 strike price, which amounts to 69.90 lakh contracts and 57.59 lakh contracts, respectively. Likewise, maximum Put OI built up was seen for 35,500 strike price, followed by 35,500 strike price, which amounts to 48.03 lakh contracts and 44.07 lakh contracts, respectively.
After considering the above technical and options data, we expect the index to remain trading sideways 35,500–36,300.
Bullish setup in stocks such as APOLLOHOSP, LTTS, MINDTREE, LTI, TATACONSMER among others.
Bearish setup in stocks such as NMDC, GLENMARK, BHEL, L&TFH among others.
Nifty Futures – LTP 16,596
Nifty scaled into new highs on Tuesday, extending the rally to seventh consecutive sessions. Nifty has been trading in higher highs higher lows price formation from the last four trading sessions with bullish momentum. Strong buying in IT and FMCG stocks lifted the index to 16,600 from 16,300 levels.
On the options data front, PCR for weekly contracts expiring August 18 stands at 1.77. From the OI data perspective for weekly contracts expiring August 18, maximum Call OI built up was seen for 16,700 strike price, followed by 16,800 strike price, which amounts to 88.95 lakh contracts and 82.44 lakh contracts, respectively. Likewise, maximum Put OI built up was seen for 16,500 strike price, followed by 16,000 strike price, which amounts to 148.25 lakh contracts and 134.27 lakh contracts, respectively. The volatility index, India Vix, cooled down to 12.71.
After considering the above technical and options data, the index is in a bullish trend and we recommend ‘buy on dips’ strategy. However, we expect the index to witness some profit booking at higher levels around 16,700–16,750 levels.
BankNifty Futures: LTP – 35,937
Bank Nifty continues to trade in a consolidation zone from the last 11 weeks and underperformed. Yesterday, it opened on a negative note and made a low of 35,600. However, it sharply bounced back from the lows and closed near 35,867. It formed a hammer candlestick pattern at its support level.
On the options data front, PCR for contracts expiring August 18 stands at 0.96. From the OI data perspective for weekly contracts expiring on August 18, maximum Call OI built up was seen for 36,000 strike price, followed by 36,200 strike price, which amounts to 69.90 lakh contracts and 57.59 lakh contracts, respectively. Likewise, maximum Put OI built up was seen for 35,500 strike price, followed by 35,500 strike price, which amounts to 48.03 lakh contracts and 44.07 lakh contracts, respectively.
After considering the above technical and options data, we expect the index to remain trading sideways 35,500–36,300.
Bullish setup in stocks such as APOLLOHOSP, LTTS, MINDTREE, LTI, TATACONSMER among others.
Bearish setup in stocks such as NMDC, GLENMARK, BHEL, L&TFH among others.
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