Derivatives update for Tuesday, 23rd November 2021.

Derivatives update for podcast

Derivatives update for Tuesday, 23rd November 2021.

India VIX shot up by 17.90% from 14.85 to 17.52 levels. Volatility spiked to higher zones giving comfort to the bears and making the market unstable.

Nifty Put/Call Ratio (OI) decreased from 0.88 to 0.67 level.

On Option front, Maximum Call OI is at 18000 strike while Maximum Put OI is at 17000 strike. Call writing is seen at 17600 then 17800 strike while Put writing is seen at 17000 then 16500 strike.

Option data suggests a shift in lower trading range in between 17000 to 17800 zones.

For monthly Bank Nifty, Maximum Put OI is at 37000 strike and maximum Call OI is placed at 38000 strike. We have seen Call writing in 37500 strike while Put writing is witnessed at 35000 with unwinding in 38000 strike.

Bank Nifty Put Call Ratio decreased from 0.62 to 0.51. Implied volatility increased from 19.2 to 20.6 levels.

Bank Nifty (CMP 37,128.80)
Data setup for Bank Nifty suggests a lower trading range in between 36500/36650 to 37777 zones.

Looking ahead at the FII’s derivatives activity, there was long built up in index futures, call & put buying in index options and short covering in stock futures.

In the cash market, FIIs were net sellers to the tune of 3439 crores and DII’s were buyers worth 2051 crores. FIIs Index Long Short Ratio increased to 54.15%.

Derivatives data and price set up suggests, till Nifty remains below 17500 zones, weakness could continue towards 17250 and 17000 zones whereas upside hurdles exist at 17650 and 17777 zones.

Till Bank Nifty remains below 37500 zones, weakness could be seen towards 36650 and 36500 zones whereas key resistance can be seen at 37777 levels.

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