Nifty99000 100%

Sensex99000 100%


Indices trading above max pain levels

Author: Dhirender Singh Bisht/Thursday, March 4, 2021/Categories: Exclusive

Rate this article:
Indices trading above max pain levels

In last few session the intraday volatility increases and we have seen gap ups and gap downs in opening. Energy and metal stocks are in uptrend and keep on gaining whereas some profit booking seen in PSU bank stocks. In weekly contract there is a call writing seen at and above 15000 call strike whereas put side writing seen at and below 14800 strike. The highest open interest concentration in call is at 15200 strike whereas in put the highest put concentration placed at 14800 strike. In monthly contract the highest put open interest concentration is at 14500 strike whereas the highest call concentration is at 15500 strike followed by 15000 strike. The implied volatility gap between at the money (ATM) call and at the money (ATM) put is normal and we can see writing on both side depending on premium or have to see the implied volatility in upcoming sessions which will attract the option sellers. The India VIX breaches its resistance in last Friday’s session and touched 29.64 level. Later then after we have seen some correction in India VIX which bring it down to its long tern trading range.

The India VIX is trading in a range of 26-18 for last 5 months. The nifty option max pain for current week and next week is at 14800 whereas the banknifty option max pain for same expires is at 35500. The indices are trading above its max pain level which shows now bull is having a grip over bear. Weekly straddle is trading around 193 that implies the option writers are comfortable at +/-193 points movement in coming sessions. The Index is likely to trade in the range of 15200 on upside in upcoming sessions whereas the support is placed around 14800. Beyond these level we can see a sharp movement. 

The writer is a senior research analyst (derivatives) at SMC Global Securities Ltd


Number of views (169)/Comments (0)

Leave a comment

Add comment



Ask the Finapolis.

I'm not a robot
Dharmendra Satpathy
Col. Sanjeev Govila (retd)
Hum Fauji Investments
The Finapolis' expert answers your queries on investments, taxation and personal finance. Want advice? Submit your Question above



The technical studies / analysis discussed here can be at odds with our fundamental views / analysis. The information and views presented in this report are prepared by Karvy Consultants Limited. The information contained herein is based on our analysis and upon sources that we consider reliable. We, however, do not vouch for the accuracy or the completeness thereof. This material is for personal information and we are not responsible for any loss incurred based upon it. The investments discussed or recommended in this report may not be suitable for all investors. Investors must make their own investment decisions based on their specific investment objectives and financial position and using such independent advice, as they believe necessary. While acting upon any information or analysis mentioned in this report, investors may please note that neither Karvy nor Karvy Consultants nor any person connected with any associate companies of Karvy accepts any liability arising from the use of this information and views mentioned in this document. The author, directors and other employees of Karvy and its affiliates may hold long or short positions in the above mentioned companies from time to time. Every employee of Karvy and its associate companies is required to disclose his/her individual stock holdings and details of trades, if any, that they undertake. The team rendering corporate analysis and investment recommendations are restricted in purchasing/selling of shares or other securities till such a time this recommendation has either been displayed or has been forwarded to clients of Karvy. All employees are further restricted to place orders only through Karvy Consultants Ltd. This report is intended for a restricted audience and we are not soliciting any action based on it. Neither the information nor any opinion expressed herein constitutes an offer or an invitation to make an offer, to buy or sell any securities, or any options, futures or other derivatives related to such securities.

Subscribe For Free

Get the e-paper free