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Below the Quote on F&O Expiry by  Mr. Chandan Taparia, Head, Equity Derivatives & Technicals, Wealth Management, MOFSL.

Nifty index corrected sharply by more than 1000 points in last four trading sessions from its recent life time high of 26277 to 25230 zones. It has been making lower top – lower bottom on daily scale and forming a big bearish candle on weekly scale. Most of the short term Mechanical indicators have turned lower with bearish crossover and recent price setup suggest some more profit booking decline before market gets stability at key support zones.

Nifty rallied well by around 5000 points from 21281 to 26277 zones in last 17 weeks and 23.60% retracement comes at 25100 zones which is an immediate support for the index. Overall as per price structure, till Nifty holds below 25500 zones, bounce could be sold for the downside target towards 24850 zones.

Weekly basis index is down by 3.5% and wiped out bullish stance of previous two weeks.

On option front, Maximum Call OI is at 26000 then 27000 strike while Maximum Put OI is at 25000 then 24000 strike. Call writing is seen at 26000 then 25500 strike while Put writing is seen at 24000 then 25000 strike. Option data suggests a broader trading range in between 24800 to 25800 zones while an immediate range between 25000 to 25500 levels.

India VIX was hovering around 13 zones in last five trading sessions has seen a spike of 14% at 13.68 marks. Surge in volatility index suggests some pressure but overall lower volatility is ruling out major panic in the market.

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