Derivatives View (June 11): Buy Bank Nifty in range of 20950-21050...

Nifty

After a flat opening, intraday volatility remained high ahead of weekly option expiry. The Nifty traded in the broader range of 10040-10148 and finally ended at 10116 with gain of 0.69%. Sectorally, action was seen in BFSI, pharma and technology stocks whereas profit taking was seen in FMCG and auto stocks. Nifty futures ended at a premium of 3 points with a fall in IVs by 2.5%. The major Put base is at 10000 strike with almost 30 lakh shares while the major Call base is at the 10300 strike with almost 25 lakh shares.

Bank Nifty

Outperformance was clearly visible in banking stocks, which led the Bank Nifty to reclaim 21000. IndusInd Bank was the leader whereas Axis Bank, Kotak Mahindra Bank and midcap banks also witnessed short covering. Looking at the OI in ATM and near OTM Calls, we feel upsides is limited. However, on the downside, 20500, 20000 remain strong supports.

Daily Index F&O recommendations

1. Sell Nifty 10200 Call (June 11 expiry) in the range of Rs. 40-42

2. Buy Bank Nifty in the range of 20950-21050

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

Source : Equity Bulls

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