As we close out the July series tomorrow, here’s a look at what traders did during the series and the values which developed.
Nifty July :
The chart shows that through the series the region of 5570 evoked the maximum interest amongst traders this July and maximum volumes were exchanged there.
This makes 5570 the fairest value for price or the region which holds max value for traders.In an ideal scenario the expiry should happen at this price or near this price.The upper level is represented by a VWAP at 5617. This region and above represents the point at which the expiry should not happen.Generally a Point of control below vwap means a seller dominated through the series and the expiry should favor the seller.
Bank Nifty July :
Whilst looking at the BN monthly profile we see price stretched or too far removed from profile lows or value. This means that the current lot of sellers in BN are not enjoying great value and the market can easily do a short covering number on them.
Value low is at 11176 whereas the best price for the series was at 11250 which is where the vwap and the point of control converge.
The most probable scenario would be for price to migrate closer to the best value tomorrow.