NSE Nifty 50 index may trade in 17400-17700 range on F&O expiry day today, Rajesh Palviya, VP – Research (Head Technical & Derivatives), Axis Securities said, adding that Implied Volatility of Nifty ATM options also suggest low volatile movement on either sides of this range in the expiry session. On the other hand, options data for Bank Nifty indicate an immediate trading range between 37000-38000 levels. Analysts added that Bank Nifty looks unlikely to cross the 38000 level in today’s session, hence advised investors to wait for any dip around 37600-37700 or a breakout above 38000 for long positions. For the Nifty 50 index, analysts suggest adopting a ‘buy on dips’ approach.
Milan Vaishnav, CMT, MSTA, Consulting Technical Analyst and founder, Gemstone Equity Research & Advisory Services
The opening minutes of the session shows that the 17600 saw a high amount of put writing activity. On the other hand, on the upper side, call writing is seen at 17700 and 17800 levels even though the maximum Call OI stands at 18000. In any case, given the very high amount of Call OI at 17700-17800, the upsides from the current levels will stay limited and the markets may spend the day in a sideways trajectory so far as intraday moves are concerned.
On the Bank Nifty front, very high call writing is seen at 38000 levels. This level also has the maximum Call OI accumulation. Therefore, it is unlikely that Bank Nifty will move beyond this point. on the lower side, it has support at 37500 as for today.
Ajit Mishra, VP – Research, Religare Broking
Nifty 50 has been seeing profit taking and tested the first line of defense i.e. 20 EMA on Tuesday. Indications are in the favour of a rebound on the weekly expiry day, however, upside may also remain capped. As per the derivatives data, the 17700-17800 zone holds strong resistance for the day while 17600 would act as a cushion. Participants should consider a “buy on dips” approach.
Bank Nifty has been showing resilience amid the recent profit taking, however, crossing the 38000 zone would be difficult in today’s session. On the downside, the 37500 level has maximum PE OI so that zone would act as immediate support. Participants should wait for any dip around 37600-37700 or a breakout above 38000 for long positions.
Rajesh Palviya, VP – Research (Head Technical & Derivatives), Axis Securities
India VIX, a market volatility indicator often called the fear gauge, is currently trading at 18.25 per cent as compared to 19 per cent last week. Implied Volatility of Nifty ATM options for the current series is at 15.90 per cent in contrast to 18.23 per cent of last week, indicating low volatile movement on either side in the expiry session.
Nifty Put options OI distribution shows that 17500 has highest OI concentration followed by 17400 & 17300 which may act as support for current expiry and on the Call front 17600 followed by 17700 & 17800 witnessed significant OI concentration and may act as resistance for current expiry. In the weekly options, there was Call writing seen at 17,600 strike followed by 17700 & 17800 while on the Put side noticeable activity of writing was witnessed in 17500, 17400 & 17200 strike prices. Options data suggest an immediate trading range between 17800 and 17300 levels.
Bank Nifty Put options OI distribution shows that 37500 has highest OI concentration followed by 37200 & 37000 which may act as support for current expiry and on the Call front 38000 followed by 38500 & 39000 witnessed significant OI concentration and may act as resistance. In the weekly options, Call writing was seen at 38000, 38500 & 39000 strike while on the put side it was seen at 37000, 37200 & 37500 Options data indicated an immediate trading range between 37000 and 38000 levels.
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