NIFTY & STOCK VIEW - 26 MAY'20

NIFTY

1. NIFTY is hovering at it's key level of 9050.
2. Weekly range for NIFTY is in between 9400 - 8400.
3. Highest OI on CALL Side is on 10000 - 3 Million followed by 9500 - 2.5 Million.
4. Highest OI on PUT Side is on 9000 - 3.2 Million followed by 8500 - 2.9 Million.

Conclusion

So as per data on Option Chain and weekly range of the NIFTY, it should expire between 9000-9500 in May Series. Still oneself must be cautious as US-CHINA Trade war is on. Also there is another tension going on with INDIA-CHINA Border. So NIFTY may take a dive due to these fears. 

STOCK IDEAS

1. HAVELLS

Stock is currently trading at 459. 

Key support level is 457 which is a crucial support tested multiple times in history while the resistance is at 484. 

Highest OI on PUT Side in on strike 450 - 0.15 Million seems a great support to the option for May'20 series 

Highest OI on CALL Side is on strike 480 - 0.13 Million seems to be the resistance for this month expiry.

Conclusion

HAVELLS may expire between 459-480 levels in Monthly Expiry for May'20. Buyers in the cash market can buy the stock at current levels for more than 4% gain in 3 Days. Option sellers can sell 450 PE or 480 CE or both.

2. ZEEL

Stock is currently trading at 163 which is unusually high before monthly expiry.

Key support level is at 154 while the near resistance is at 165. 

Highest OI on the PUT side is on Strike 160 - 0.6 Million followed by Strike 150 - 0.4 Million.

Highest OI on the CALL side is on Strike 170 - 1.2 Million which more than double.

Conclusion

ZEEL should expire between 150 - 170 for May'20 series. So cash traders should look for a sorting opportunities. Option seller can sell 170 CE or 150 PE or both for a good premium.