Derivative View for Weekly Expiry – Aug 5, 2021
August 05 2021 | Reading Time: 5 Minutes
Indian benchmark indices may open flat-to-positive today. At 8:15 am IST, SGX Nifty Futures was trading at 16,284, compared with Nifty’s close of 16,258 yesterday, indicating a positive opening for the bourses.
Nifty Futures – LTP 16,260
Nifty broke out from its strong resistance at 15,900 on Monday and gained almost 350 points. Nifty scaled a record closing high, led by Banking and Financial stocks. The index is up for the third consecutive session, with a higher-high and higher-low price formation.
On the options data front, PCR for weekly contracts expiring August 5 stands at 1.75. From the OI data perspective for weekly contracts expiring August 5, maximum Call OI built up was seen for 16,400 strike price, followed by 16,300 strike price, which amounts to 95.72 lakh contracts and 94.57 lakh contracts, respectively. Likewise, maximum Put OI built up was seen for 16,000 strike price, followed by 16,200 strike price, which amounts to 97.75 lakh contracts and 89.81 lakh contracts, respectively. The volatility Index, India Vix cooled down to 13.21.
After considering the above technical and option data, the index is in a bullish trend and we recommend that investors follow ‘buy on dips’ strategy. We expect the index to gain further toward 16,350–16,400 in one to two trading sessions.
BankNifty Futures: LTP – 36,094
Bank Nifty gained for the second consecutive session and outperformed other sectoral indices. After reclaiming its 50-DMA, it broke out from a cup-with-handle pattern yesterday with positive RSI and MACD. Stocks like HDFC, SBIN, and ICICIBANK are the major contributors for this index.
On the options data front, PCR for contracts expiring August 5 stands at 0.98. From the OI data perspective for weekly contracts expiring on August 5, maximum Call OI built up was seen for 37,000 strike price, followed by 36,000 strike price, which amounts to 64.83 lakh contracts and 54.82 lakh contracts, respectively. Likewise, maximum Put OI built up was seen for 35,000 strike price, followed by 34,500 strike price, which amounts to 72.79 lakh contracts and 70.41 lakh contracts, respectively.
After considering the above technical and option data, we advise to follow ‘buy on dips’ strategy. We expect this index may gain toward 36,400–36,500 levels in a day or two.
Bullish setup in stocks: HDFC, ICICIBANK, AUBANK, SBIN among others.
Bearish setup in stocks: IDEA, INDUSTOWER, IDFCFIRSTB, RBLBANK among others.
Nifty Futures – LTP 16,260
Nifty broke out from its strong resistance at 15,900 on Monday and gained almost 350 points. Nifty scaled a record closing high, led by Banking and Financial stocks. The index is up for the third consecutive session, with a higher-high and higher-low price formation.
On the options data front, PCR for weekly contracts expiring August 5 stands at 1.75. From the OI data perspective for weekly contracts expiring August 5, maximum Call OI built up was seen for 16,400 strike price, followed by 16,300 strike price, which amounts to 95.72 lakh contracts and 94.57 lakh contracts, respectively. Likewise, maximum Put OI built up was seen for 16,000 strike price, followed by 16,200 strike price, which amounts to 97.75 lakh contracts and 89.81 lakh contracts, respectively. The volatility Index, India Vix cooled down to 13.21.
After considering the above technical and option data, the index is in a bullish trend and we recommend that investors follow ‘buy on dips’ strategy. We expect the index to gain further toward 16,350–16,400 in one to two trading sessions.
BankNifty Futures: LTP – 36,094
Bank Nifty gained for the second consecutive session and outperformed other sectoral indices. After reclaiming its 50-DMA, it broke out from a cup-with-handle pattern yesterday with positive RSI and MACD. Stocks like HDFC, SBIN, and ICICIBANK are the major contributors for this index.
On the options data front, PCR for contracts expiring August 5 stands at 0.98. From the OI data perspective for weekly contracts expiring on August 5, maximum Call OI built up was seen for 37,000 strike price, followed by 36,000 strike price, which amounts to 64.83 lakh contracts and 54.82 lakh contracts, respectively. Likewise, maximum Put OI built up was seen for 35,000 strike price, followed by 34,500 strike price, which amounts to 72.79 lakh contracts and 70.41 lakh contracts, respectively.
After considering the above technical and option data, we advise to follow ‘buy on dips’ strategy. We expect this index may gain toward 36,400–36,500 levels in a day or two.
Bullish setup in stocks: HDFC, ICICIBANK, AUBANK, SBIN among others.
Bearish setup in stocks: IDEA, INDUSTOWER, IDFCFIRSTB, RBLBANK among others.
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