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Below the Quote on F&O Expiry by Mr. Chandan Taparia, Senior Head Derivatives & Technicals, Wealth Management, Motilal Oswal Financial Services Ltd

Nifty opened on a negative note today around the 24740 mark and slipped sharply lower due to sustained selling, making an intraday low of 24,462. However, in the final hour, the index found strong support at its 20-day EMA and witnessed a sharp bounce of more than 120 points, trimming some losses. After last week’s sharp rally, Nifty began this week on a cautious note and witnessed selling pressure at higher levels. Bears gradually gained control, leading to profit booking and increased volatility throughout the week.  As a result, the index formed a bearish candle on the weekly chart, signaling hesitation at higher zones after a strong up-move in the previous series.

While the weekly candle reflects pressure at higher levels, the long lower shadow on the daily chart suggests that support-based buying remains active. The index is still trading above all its key short-term moving averages.

The FIIs long-short ratio is hovering near 40%. Now, it has to cross and hold above 24700 zones for an up move towards 24850 then 25000 zones while a hold below the same could see a profit booking decline towards 24444 then 24300 levels.

On option front, Maximum Call OI is at 26000 then 25000 strike while Maximum Put OI is at 24000 then 23000 strike. Call writing is seen at 26500 then 24600 strike while Put writing is seen at 24600 then 22500 strike. Option data suggests a broader trading range in between 24000 to 25000 zones while an immediate range between 24400 to 24800 levels.

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