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:
Series expiry:
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.
Sector Updates:
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.
Stock Updates:
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)
