Bank Nifty July futures had ended marginally lower on Thursday as investors turned cautious ahead of no-trust vote against the NDA Government on Friday. Bank Nifty futures contract ended down by 77.90 points at 26852.85. The underlying value of the contract closed at 26,789.65.

Active call options of July 26 expiry

Among the call option chain, the In-The-Money Bank Nifty Call 26,700 option was the actively traded contract. The option price closed at Rs 275.35, down by Rs 74.55 or 21.30 per cent. However, open interest in the contract jumped by 63.65 per cent.

Traders have bought some long-call positions in the contract as the option price declined in line with the fall in the index. The implied volatility of the option price was at 13.34 per cent. This confirms that the underlying Bank Nifty may encounter strong resistance at 27,000 levels.

The Bank Nifty Call 27,000 option contract is currently an Out-Of-The-Money option that traded very active on Thursday. The contract price ended down by 31.50 per cent at Rs 120.90.

Interestingly, the open interest increased by 37 per cent. The IV of the option price was comparatively lower at 12.78 per cent which signifies that this option is not expensive at these price levels. This implies that that underlying Bank Nifty index is likely to face resistance around 27,150-27,200, in case of an upside move.

 

Active put options of July 26 expiry

On the put option chain, the In-The-Money Bank Nifty Put 27,000 option contract traded stronger on Thursday. The put option price gained 11.20 per cent to Rs 265. OI improved by 8 per cent.

The implied volatility was comparatively lower at 11.75 per cent. Hence, the underlying Bank Nifty is likely to get support around 26600-26700 levels in the short-term.

The Bank Nifty Out-Of-The-Money Put 26,600 contract was the main focus of traders’ attention. This contract gained 3.70 per cent to Rs 100. OI jumped 60.85 per cent.

The IV of the option price was relatively higher at 13.40 per cent which suggests that this option price was in good demand. This confirms that the Bank Nifty underlying is likely to get support around 26,500-26,600 levels in the short-term.

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