Derivative View for Weekly Expiry – Sep 9, 2021
September 09 2021 | Reading Time: 5 Minutes
Indian benchmark indices may open on a negative note today. At 8:15 am IST, SGX Nifty Futures was trading at 17,332, compared with Nifty’s close of 17,353 yesterday, indicating a flat to negative opening for the bourses.
Nifty Futures – LTP 17,353
Nifty touched an all-time high of 17,440 and traded sideways from the last three trading days. Yesterday, Nifty traded choppy and traded lower due to profit booking in IT, Auto, and Pharma stocks. Yesterday, it formed a bearish candle with a long lower shadow. However, from the last three trading sessions, Nifty formed “Doji” like candles, which indicate indecisiveness.
On the options data front, PCR for weekly contracts expiring September 9 stands at 1.55. From the OI data perspective for weekly contracts expiring September 9, maximum Call OI built up was seen for 17,500 strike price, followed by 18,000 strike price, which amounts to 128.24 lakh contracts and 127.23 lakh contracts, respectively. Likewise, maximum Put OI built up was seen for 17,300 strike price, followed by 17,000 strike price, which amounts to 96.99 lakh contracts and 77.72 lakh contracts, respectively. The volatility Index, India Vix, remained flat at 14.41.
After considering the above Technical and options data, the index is in a bullish trend and we recommend that investors continue to follow buy on dips strategy. However, some profit booking cannot be denied at higher levels. 17,400–17,440 is acting as a resistance zone and it must cross and hold above these levels for further upside move. On the flip side, index has support at 17,300, followed by 17,150 levels.
Bank Nifty Futures: LTP – 36,768
Bank Nifty broke out in the last week of August. Post breakout, it made a high at 37,100 and reversed its trend. However, it took support near its breakout level and bounced sharply. Even momentum indicator RSI is trending higher with positive bias and MACD also got a positive crossover on August 30, which indicates some buying interest in this particular space that has been underperforming Nifty50 for a long time. Currently, Bank Nifty is trading above its all key moving averages on multi time frame chart with positive bias.
On the options data front, PCR for contracts expiring September 9 stands at 1.08. From the OI data perspective for weekly contracts expiring on September 9, maximum Call OI built up was seen for 37,000 strike price, followed by 38,000 strike price, which amounts to 79.73 lakh contracts and 68.99 lakh contracts, respectively. Likewise, maximum Put OI built up was seen for 36,500 strike price, followed by 36,000 strike price, which amounts to 68.47 lakh contracts and 64.06 lakh contracts, respectively.
After considering the above Technical and options data, index may trade in the range of 36,500–37,200 with a positive bias.
Bullish setup in stocks: NAUKRI, HDFCAMC, REC, PFC, and KOTAKBANK, among others.
Bearish setup in stocks: such as GLENMARK, MARUTI, and LUPIN, among others.
Nifty Futures – LTP 17,353
Nifty touched an all-time high of 17,440 and traded sideways from the last three trading days. Yesterday, Nifty traded choppy and traded lower due to profit booking in IT, Auto, and Pharma stocks. Yesterday, it formed a bearish candle with a long lower shadow. However, from the last three trading sessions, Nifty formed “Doji” like candles, which indicate indecisiveness.
On the options data front, PCR for weekly contracts expiring September 9 stands at 1.55. From the OI data perspective for weekly contracts expiring September 9, maximum Call OI built up was seen for 17,500 strike price, followed by 18,000 strike price, which amounts to 128.24 lakh contracts and 127.23 lakh contracts, respectively. Likewise, maximum Put OI built up was seen for 17,300 strike price, followed by 17,000 strike price, which amounts to 96.99 lakh contracts and 77.72 lakh contracts, respectively. The volatility Index, India Vix, remained flat at 14.41.
After considering the above Technical and options data, the index is in a bullish trend and we recommend that investors continue to follow buy on dips strategy. However, some profit booking cannot be denied at higher levels. 17,400–17,440 is acting as a resistance zone and it must cross and hold above these levels for further upside move. On the flip side, index has support at 17,300, followed by 17,150 levels.
Bank Nifty Futures: LTP – 36,768
Bank Nifty broke out in the last week of August. Post breakout, it made a high at 37,100 and reversed its trend. However, it took support near its breakout level and bounced sharply. Even momentum indicator RSI is trending higher with positive bias and MACD also got a positive crossover on August 30, which indicates some buying interest in this particular space that has been underperforming Nifty50 for a long time. Currently, Bank Nifty is trading above its all key moving averages on multi time frame chart with positive bias.
On the options data front, PCR for contracts expiring September 9 stands at 1.08. From the OI data perspective for weekly contracts expiring on September 9, maximum Call OI built up was seen for 37,000 strike price, followed by 38,000 strike price, which amounts to 79.73 lakh contracts and 68.99 lakh contracts, respectively. Likewise, maximum Put OI built up was seen for 36,500 strike price, followed by 36,000 strike price, which amounts to 68.47 lakh contracts and 64.06 lakh contracts, respectively.
After considering the above Technical and options data, index may trade in the range of 36,500–37,200 with a positive bias.
Bullish setup in stocks: NAUKRI, HDFCAMC, REC, PFC, and KOTAKBANK, among others.
Bearish setup in stocks: such as GLENMARK, MARUTI, and LUPIN, among others.
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