Synopsis The Nifty could trade in a range of 14,423 -14,977 with a bias for the upside before settling around 14,700-14,750 at the expiry of the January derivative series, options data show, for now.
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If the Nifty moves sharply above or below the range of 14,423-14,977 at expiry, she would face huge losses.
Mumbai: The Nifty could trade in a range of 14,423 -14,977 with a bias for the upside before settling around 14,700-14,750 at the expiry of the January derivative series, options data show, for now.
Traders sold huge quantities of calls and put options at the 14,700 strike or level. Based on provisional closing rates a trader would receive Rs 277 a share (75 shares make one lot) from a combined sale of calls and puts to the buyers. This means as long as Nifty doesn’t expire above 14,977 or below 14,423, she makes money. Her maximum gain of Rs 277 would ensue if Nifty settled at 14,700 on January 28, when the current derivatives series expires. If the Nifty mo
Synopsis
The ladder is implemented by buying one call option at 32,000 level and selling two calls at 32,500 and 33,000 with the view of a 1,000-1,200 point rise in the index this month from Wednesday closing.
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Abhishek Karande, CMT senior analyst, Reliance Securities, expects HDFC Bank, ICICI, Axis and SBI to drive the Bank Nifty to a new high of 33,000 this month.
Mumbai: Rich traders could initiate an options strategy on Bank Nifty which ensures gains whether the index rises or falls. The trader gains irrespective of market direction since she receives a credit by initiating the strategy.
The strategy called Bull Call Ladder can be initiated on expectation that the Bank Nifty would break past its record high of 32,613.1 made on December 30, 2019 in the current derivative series which expires on January 28. The index closed at 31,797.90 on Wednesday, just 2.6 per cent short of the all-time high.
Mumbai: Is the market ready for a breather, having posted a new high of 14,024.85 on the last day of the year?
Provisional weekly derivatives data seems to hint at a minor correction even as analysts believe dips would be bought into.
Options traders aggressively sold call options at 14000 level, with Nifty having closed at 13,981.75. They sold a provisional 10.6 lakh shares (75 shares make one contract), taking the outstanding positions or open interest (OI) to 20.6 lakh shares.
Sellers also raised positions at 13900 put on Nifty options expiring on January 7.
The positions at both calls and puts indicate a range of 13,800-14,123 for the week ending on January 7.
Synopsis
Nifty’s range next week based on the 13,700 call and put value is 13,476-13,924. The index closed up 1.1 per cent at 13,749.25 at the end of the holiday shortened week.
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December 31 expiry Nifty options’ put call ratio was 1.49, implying more put than call selling, a bullish indicator.
MUMBAI: The Nifty could move toward a new high of 13,924 if it breaks and sustains above the record high of 13,777.50, having come within kissing distance of it intraday on Thursday, derivative data show. Some analysts are not ruling out a dip before the market makes a tryst with a new high.