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

After a strong recovery last week, Nifty continued its positive momentum this week but faced resistance at higher levels. On Monday, the index opened gap down but managed to hold support near the 23200 zone leading to a rebound. On Tuesday index witnessed a sharp rally of over 350 points with bulls taking control as the index surged towards the 23800 zone. However, follow-up buying is now missing at higher levels as Nifty has been stuck in a 250 point range over the last two sessions. The index needs a decisive breakout above 23800 for further upside while sustaining above 23333 will be crucial for maintaining the bullish structure. On the weekly chart, the index has formed bullish candle and formed sequence of higher high higher low.

The FIIs long-short ratio is increased from 11% to 18% in this week showing a surge in long positions. This shift indicates reduced selling pressure at higher levels and increased buying interest near support zones. Based on the current price structure Nifty has to hold above 23500 zones for an up move towards 23750 then 23900 zones whereas supports are placed at 23500 then 23333 zones.

On option front, Maximum Call OI is at 24000 then 24500 strike while Maximum Put OI is at 23600 then 23500 strike. Call writing is seen at 23600 then 23700 strike while Put writing is seen at 23600 then 23700 strike. Option data suggests a broader trading range in between 23000 to 24000 zones while an immediate range between 23400 to 23800 levels.

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