Weekly F&O expiry: How to trade Nifty, Bank Nifty on expiry day? Trade setup, likely trading vary, outlook

Bank Nifty has fallen practically 2 per cent to date this week and shut store at 34,415.45 on Tuesday

On weekly F&O expiry day, Nifty is likely to see a constructive opening and trade in a spread of 15,550-15,750. The 34,400 stage will act as an necessary stage in Bank Nifty on Thursday, and the general trading vary is anticipated to be between 34,000-35,000, mentioned analysts. The Nifty 50 index lost 1.5 per cent within the final two days, and in intraday offers on Tuesday, it gave up the 15,600 help stage, nonetheless, recovering from the lows it closed at 15,632. Bank Nifty has fallen practically 2 per cent to date this week and shut store at 34,415.45 on Tuesday. Ahead of weekly choices expiry, Indian stock markets remained closed on Wednesday, on account of Eid al-Adha. India VIX, the volatility gauge, spiked 4.14 per cent to 13.21 ranges on Tuesday.

On Nifty choices, the utmost Call OI is at 15,800 strike with 78,095 contracts, adopted by 15,700 strike worth. While most Put OI is at 15,500, adopted by 15,600. Call writing was seen at 15,700 and 15,650 strikes, whereas Put writing was seen at 15,500, then 15,400 stage strikes. Call unwinding was at 16,500 and 16,000 strikes and put unwinding was seen at 15,700. For Bank Nifty choices, the best open curiosity on the decision aspect within the weekly expiry is at 36,000, adopted by 37,000 strike; whereas the best OI on the put aspect is at 33,500-34,500 strike.

Rajesh Palviya, Vice President — Research (Head Technical & Derivatives), Axis Securities

Nifty has witnessed Short Build Up with a worth lower of -0.73% and improve in OI of three.71 lakh shares on Tuesday, whereas in Bank Nifty additionally there was Short Build Up with worth lower of -1.94% & OI addition of 1.77 lakh shares. The sentiment indicator PC Ratio (Nifty) is at the moment trading at 0.81, effectively beneath the median line, indicating neutral-to-positive bias. Nifty highest OI on the CALL aspect within the weekly expiry scheduled on 22 July 2021 is at 15,800 and 15,700 strikes whereby writing of 39.67 lakh shares was witnessed at 15,700 strike and 17.91 lakh shares of writing was seen at 15,650 strike indicating sturdy resistance zone at 15,700, whereas on the PUT aspect highest OI is at 15,500 and 15,600 strikes; whereby writing of 6.41 lakh and 6.56 lakh shares was seen at 15,500 and 15,400 strikes, respectively, indicating a robust help zone. So, essentially the most possible vary for the weekly expiry is likely to be between 15,750 to 15,550

In Bank Nifty the best OI on the CALL aspect within the weekly expiry is at 36,000, 35,000 and 35,500 strike; whereas on the PUT aspect highest OI is at 33,500, 34,500 and 34,000 strike, with 34,400 performing as a pivotal stage for this weekly expiry as there was addition of three.11 lakh shares on CALL aspect and 1.75 lakh addition on PUT aspect, suggesting that any maintain transfer on both aspect of this stage will determine the pattern in Bank Nifty. While on the writing entrance 34500, 34600 and 34700 strike name has seen writing of 14.22 lakh, 7.68 lakh and seven.34 lakh shares, respectively, adopted by 33,500 and 34,100 put writing, indicating a robust help zone; total vary for Bank Nifty is likely to be between 35,000 to 34,000.

Sameet Chavan, Chief Analyst – Technical & Derivatives, Angel Broking

Post the weak begin, the indices corrected sharply and it continued that on Tuesday as effectively. The banking area was the foremost offender in dragging benchmark indices decrease, coupled with the general sentiments. Infact, brief formations have been additionally seen within the Bank Nifty within the derivatives phase. FII’s bought equities aggressively within the money phase and likewise unwound longs within the index futures phase.

In the choices phase, name writers have been fairly lively and bought 15,700-15,900 calls. The highest open curiosity within the weekly sequence is positioned at 15,800 name and 15,500 put choices. The Nifty PCR-OI plunged beneath 1 which signifies the market nearing the oversold zone. India VIX has additionally spiked a bit from multi-year lows, however it’s nonetheless not a lot excessive to fear about. Rather a lot will rely on how the worldwide market strikes given the very fact now we have a market vacation forward of the weekly expiry.

Traders are suggested to keep away from aggressive positions for this weekly expiry, however one can search for a contra trade and purchase a month-to-month expiry name possibility if Nifty enters the help zone of 15,500-15,450. For Bank Nifty, this help zone lies within the vary of 34,200-33,900 the place some punts could be taken.

Milan Vaishnav, CMT, MSTA, Consulting Technical Analyst and founder, Gemstone Equity Research & Advisory Services

Markets will head into weekly choices expiry with a weaker setup. Tuesday noticed heavy name writing at 15,700 which additionally noticed some Put unwinding as effectively. However, 15,800 nonetheless has the best Call OI focus on a closing foundation. Nifty may even see a constructive opening and witness some technical pullback, nonetheless, it would face stiff resistance on the 15,700-15,800 space. On the decrease aspect, it has help at 15,500.

Bank Nifty additionally noticed excessive name writing at 34,500 ranges. Unless, if there’s a pullback and Bank Nifty opens above this level, it could face some wrestle at this stage. However, most Call OI focus on Bank Nifty is at 35,000 which is a serious resistance level even when a technical pullback happens. On the decrease aspect, it has help at 34,000 ranges given the PUT OI as seen within the weekly choices information.

Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities

Huge name writing is lined up between 15700 and 15800, However, the Put writing is lined up at 15600 and 15500. If we contemplate the PCR then it’s on the lowest ranges of the expiry, which is a sign of the oversold exercise.

The Strategy

In case the market opens down round 15550, then it could be advisable to purchase Call choices for the 15500 strike between Rs 170-180. Keep a last cease loss at Rs 100 for the goal of Rs 270-300. Buying Put choices is advisable if the Nifty opens greater round 15750 ranges.

Buying Call choices is advisable, nonetheless, for that, we’d like a gap or intraday testing of the Bank Nifty to 34,200-34,100 ranges (as per spot foundation). Buy name choices of the strike 34,000 between Rs 250-300 ranges with a cease loss at Rs 100. In case the Bank Nifty is opening greater, then we must be the client within the put choices of the strike 35,000. However, for that, we’d like a gap of the Bank Nifty round 34,700.

(The suggestions on this story are by the respective analysis analysts and brokerage corporations. Financial Express Online doesn’t bear any accountability for his or her funding recommendation. Capital markets investments are topic to guidelines and laws. Please seek the advice of your funding advisor earlier than investing.)

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