Derivatives View (June 10): Sell Bank Nifty in range of 20950-21000...

Nifty

Despite starting the day on a positive note, Call writers of OTM strikes dominated the day and dragged the Nifty lower. The Nifty tested its major Put base of 10000 due to selling in heavyweights. From the option front, aggressive additions were seen in 10100 and 10200 strike. These levels should be strong resistance on upsides. However, on downsides, 9950 will act as support. Nifty futures ended at a discount of 13 points with a rise in IVs by 1.8%. The major Put base is at 9800 strike with almost 22 lakh shares while the major Call base is at the 10300 strike with almost 28 lakh shares.

Bank Nifty

For a major part of the day, the Bank Nifty remained under pressure due to selling in most private banks along with PSU banks. From the option space, 21500 Call has significant OI that may act as hurdle on upsides. On the other hand, 20000 Put holds maximum OI that should be support on downsides.

Daily Index F&O recommendations

1. Sell Nifty 10200 Call (June 11 expiry) in the range of Rs. 47-48

2. Sell Bank Nifty in the range of 20950-21000

For details, click on the link below: https://www.icicidirect.com/mailimages/Derivatives_view.pdf

Source : Equity Bulls

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