Derivative View for Weekly Expiry – October 07, 2021
October 07 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 17,772, compared with Nifty’s close of 17,646 yesterday, indicating a positive opening for the bourses.
Nifty Futures – LTP 17,627
Nifty witnessed a sharp selloff after a spike in 10-year U.S. bond yield. The index fell toward its 21-DMA and selling pressure was seen across all major sectors. After two consecutive days of upside, Nifty formed a “bearish engulfing candle” yesterday.
On the options data front, PCR for weekly contracts expiring October 7 stands at 0.56. From the OI data for weekly contracts expiring on October 7, maximum Call OI built up was seen for 18,000 strike price, followed by 17,900 strike price, which amounts to 164.68 lakh contracts and 131.75 lakh contracts, respectively. Likewise, maximum Put OI built up was seen for 17,500 strike price, followed by 17,600 strike price, which amounts to 85.24 lakh contracts and 69.71 lakh contracts, respectively. The volatility Index, India Vix, cooled off 8% to 17.33 last week.
After considering the above technical and options data, we expect the index to trade sideways. Further, 17,850 - 17,900 is a key level to watch in today’s trading session. However, we expect the index to trade in the range of 17,600–17,900 today.
BankNifty Futures: LTP – 37,624
BankNifty started on a positive note on Monday as well as Tuesday. But Wednesday’s closing has been a point of concern as it has formed a bearish candle but was able to form a higher high and higher low on the daily chart. The index is hovering near its 21-EMA and trading above that level from the past three days. The momentum indicator plotted on the daily chart bent downward in yesterday’s trading session and placed at 66 and another indicator MACD indicated a negative crossover on September 30. However, there is no such weakness visible on higher time frame chart (i.e. Weekly and Monthly).
On the options data front, PCR for contracts expiring October 7 stands at 0.67. From the OI data perspective for weekly contracts expiring on October 7, maximum Call OI built up was seen for 38,000 strike price, followed by 39,000 strike price, which amounts to 97.20 lakh contracts and 62.91 lakh contracts, respectively. Likewise, maximum Put OI built up was seen for 37,000 strike price, followed by 36,500 strike price, which amounts to 55.83 lakh contracts and 52.30 lakh contracts, respectively.
After considering the above technical and options data, we expect this may bounce back from the current level and move higher to touch the range of 38,000–38,300. However, breaching the immediate support of 21-EMA may turn the index volatile and could accelerate toward downside.
Bullish setup in stocks: Tata Motors , DLF, Godrej Properties, BOSCH LTD, among others.
Bearish setup in stocks: Godrej Csm.Products, Petronet L N G, and Cadila Healthcare , among others.
Nifty Futures – LTP 17,627
Nifty witnessed a sharp selloff after a spike in 10-year U.S. bond yield. The index fell toward its 21-DMA and selling pressure was seen across all major sectors. After two consecutive days of upside, Nifty formed a “bearish engulfing candle” yesterday.
On the options data front, PCR for weekly contracts expiring October 7 stands at 0.56. From the OI data for weekly contracts expiring on October 7, maximum Call OI built up was seen for 18,000 strike price, followed by 17,900 strike price, which amounts to 164.68 lakh contracts and 131.75 lakh contracts, respectively. Likewise, maximum Put OI built up was seen for 17,500 strike price, followed by 17,600 strike price, which amounts to 85.24 lakh contracts and 69.71 lakh contracts, respectively. The volatility Index, India Vix, cooled off 8% to 17.33 last week.
After considering the above technical and options data, we expect the index to trade sideways. Further, 17,850 - 17,900 is a key level to watch in today’s trading session. However, we expect the index to trade in the range of 17,600–17,900 today.
BankNifty Futures: LTP – 37,624
BankNifty started on a positive note on Monday as well as Tuesday. But Wednesday’s closing has been a point of concern as it has formed a bearish candle but was able to form a higher high and higher low on the daily chart. The index is hovering near its 21-EMA and trading above that level from the past three days. The momentum indicator plotted on the daily chart bent downward in yesterday’s trading session and placed at 66 and another indicator MACD indicated a negative crossover on September 30. However, there is no such weakness visible on higher time frame chart (i.e. Weekly and Monthly).
On the options data front, PCR for contracts expiring October 7 stands at 0.67. From the OI data perspective for weekly contracts expiring on October 7, maximum Call OI built up was seen for 38,000 strike price, followed by 39,000 strike price, which amounts to 97.20 lakh contracts and 62.91 lakh contracts, respectively. Likewise, maximum Put OI built up was seen for 37,000 strike price, followed by 36,500 strike price, which amounts to 55.83 lakh contracts and 52.30 lakh contracts, respectively.
After considering the above technical and options data, we expect this may bounce back from the current level and move higher to touch the range of 38,000–38,300. However, breaching the immediate support of 21-EMA may turn the index volatile and could accelerate toward downside.
Bullish setup in stocks: Tata Motors , DLF, Godrej Properties, BOSCH LTD, among others.
Bearish setup in stocks: Godrej Csm.Products, Petronet L N G, and Cadila Healthcare , among others.
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