loader2
Partner With Us NRI

Open Free Demat Account Online with ICICIDIRECT

ATM Straddle writing suggesting consolidation in expiry week

Commentary:

A sharp recovery from 16500 was seen last week where the technology space followed by select metals and leaders like L&T, Reliance Industries and HDFC group did well. The volatility index remained subdued despite sharp selling, which should be considered positive.

Major Option activity (Weekly):

Major Call OI change in today’s session: 17300 (40.1 lakh), 17400 (23.52 lakh) and 17500 (20.8 lakh).

Major Put OI change in today’s session: 17200 (16.2 lakh) and 17100 (12.7 lakh).

Outlook:

The Nifty recouped most of its losses last week and managed to test its Call base of 17000. Despite sharp reversal, almost 90 lakh shares are open in 17000 strike Straddle. Such high OI in ATM Straddle and no major spike in IVs is suggesting consolidation in the expiry week. FIIs, which remained net negative for the December series in the cash segment, have reduced their selling quantum in the Christmas week. We feel that on the back of lack of participation by FIIs there will not be any major moves in the expiry week. December series VWAP is marginally below 17200 levels whereas major Put writing for the main expiry is at 16700 strike. Hence, we feel the Nifty is likely to trade in a broader range of 16700-17200 in the expiry week

Most Popular

  • 13 May 2022
  • ICICI Securities

The Five-Point Financial Planning Checklist For Your Family

Whether you just got married or planning to have a baby or have dependents, you should have financial plans for every stage in your life to ensure a secured future for your family members. Here are five things you can do financially for your family.   

  • 12 May 2022
  • ICICI Securities

What is a Zero Coupon Bond?

You get fixed returns in the form of interest until maturity when you invest in a bond. Zero-coupon bonds work a little differently. In this article, find out what zero-coupon bonds are, their advantages and whether you should invest in them. 

  • 12 May 2022
  • ICICI Securities

What are Cross Currency Pairs?

The forex market is the largest financial market globally. Currency trading is a lucrative and booming business. While most currencies trading happens in relation to the US Dollar, some don’t. That forms the basis of cross currency pairs. Here’s what you need to know about it. 

  • 12 May 2022
  • ICICI Securities

Investing principles from Benjamin Graham: The Father of Value Investing

Benjamin Graham was a British born economist, professor, and investor who taught at Columbia University. He was also a mentor to some of the most famous investors of the 20th century, including Irving Khan, John Templeton, & Warren Buffett. Buffett called him "the second most influential figure in his life, only after my father". 

  • 12 May 2022
  • ICICI Securities

How to Invest in Nifty 50?

The Nifty 50 is the benchmark index of the National Stock Exchange. It represents the 50 largest companies listed in India. Investing in the Nifty 50 can be a good idea for those looking to make index-linked returns. Here’s how you can invest in the index. 

  • 12 May 2022
  • ICICI Securities

Investment philosophy of Cathie Wood: The most powerful woman on Wall Street

Catherine Duddy Wood, also called Cathie Wood, is an investor who primarily invests in disruptive technologies and is the founder, chief executive officer, and chief investment officer of ARK Investment Management, LLC, an investment management firm mostly active in the United States.

  • 11 May 2022
  • ICICI Securities

How to Use Technology to Improve Your Finances

Technology has made life simpler for everyone. In the realm of personal finance, technology has streamlined many processes—from budgeting to automating your payments. On National Technology Day, let’s look at how technology has transformed our finances. 

  • 11 May 2022
  • ICICI Securities

How to Invest in your Every Goal with Mutual Funds?

Each of us is unique. We have different needs and goals in life. Some of us can ride along swinging markets, while some may need a relatively conservative investment tool. 

  • 11 May 2022
  • ICICI Securities

Four Reasons Why Entrepreneurs should Invest in Equity Mutual Funds

Equity mutual funds provide growth opportunities not just for individual investors but also for entrepreneurs and corporates. They make excellent investments for anyone looking for wealth creation. This article will give you four reasons why businesspeople should consider investing in equity mutual funds.