Monthly expiry option for Nifty, witnesses PE writers actively adding their positions at 18,000PE – over 50 lakh shares OI, followed by 18,300PE – overall 49 lakh shares. CE writers exposure lies at 19,000CE – more than 90 lakh shares OI, followed by 19,500CE. PCR_OI at 18,300 is comfortably above 1 is the crucial immediate support zones for the index.
Option Strategy recommendation:
Since a tight range scenario, so Iron Condor can be practised:
Buy 18,600CE and Sell 18,500CE, along with buy 18,100PE and Sell 18,200PE.
BankNifty option chain reflects on PE writers standing tall at 42,000 strike – overall 17 lakh shares OI and fresh exposure of 6 lakh shares OI. CE writers congestion lies at 42,500 and 43,000 strikes – more than 17 lakh shares each as well, which reflects a tight range in between 42,000 and 43,000 zones on immediate basis.
On weekly basis most of the sectors saw participation on the upside, with automobiles, cement, banking and metals set to outperform in the coming week as well.
Buy LT: CMP Rs 2,036, TGT Rs 2,170/2,230, SL Rs 1,985.
Sell Naukri: CMP Rs3,961, TGT Rs 3,800/3,660, SL Rs 4,050.
(The author is Derivatives Lead Analyst, Prabhudas Lilladher Pvt Ltd)
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)