Nifty’s coming week expiry option chain witnesses PE writers actively adding their positions at 17000PE- overall nearly 90 thousand contracts and fresh additions of over 60 thousand contracts. CE writers stood tall at 17000CE levels, followed by 17700/17800 strikes – more than 55 thousand contracts each. PCR_OI at 17000 being well above 1, is still a very positive sign for the bulls, which, if sustains, then a reversal of trend will be seen for higher targets, otherwise, a slip towards 16600 cannot be ruled out.
Option Strategy recommendation:
Bearish move expected, so bear Spread Call recommended
Weekly expiry BUY 17050CE at 175/- and SELL 16800CE at 325/-
Bank Nifty weekly expiry option chain reflects on PE writers building positions at 37500 strikes – overall more than 40 thousand contracts and fresh additions of 30 thousand contracts. CE writers add up exposures of over 50 thousand contracts at various strikes from 39000-42000 zones, thereby hinting the on a very broad range for the index.
Since the immediate range is far spread, participating in Short Strangle is well suggested.
Weekly expiry: SELL 37000PE at 85/- and SELL 40000CE at 105/-
The total inflow of 190/-. (SL at 260/- to be maintained or as per risk capacity also recommended for traders).
P.S: please note selling options is a high-risk play, so only traders who can understand the risk to participate.
Sector Updates
On a weekly basis, most sectors saw steep correction, with metals only witnessing selective scrip buying.
Stocks Updates
BUY JINDALSTEL : CMP 435, buy on declines till 422, TGT 453/470, SL 415.
SELL
: CMP 516, TGT 503/494, SL 522.
The author is Lead Analyst-Derivatives at Prabhudas Lilladher
