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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

This week, Nifty started on a weak note with a gap-down opening on Monday, hitting a fresh low of 22725. However, the index managed to hold this level, witnessing a modest recovery that provided some relief to the bulls. Over the last three trading sessions, Nifty has consistently tested the 22800 zone bouncing back by 100-150 points each time. This indicates the presence of support-based buying but the lack of strong follow-up buying at higher levels suggests a cautious sentiment in the market.

On the weekly chart, Nifty has formed a small-bodied bullish candle indicating that while selling pressure persists buyers are attempting to defend key support levels. The index needs a decisive breakout above 23000 for upside momentum towards 23333 levels while sustaining below 22800 zones, index can head towards 22600 zones.

The FIIs long-short ratio is hovering around 16 levels. Increasing Put Call Ratio indicates support based buying is there on lower levels. Based on the current price structure nifty if it manages to cross and hold above 23000 zones then bounce could be seen towards 23200 then 23333 zones while supports are intact at 22800 then 22725 zones.

On option front, Maximum Call OI is at 23500 then 24000 strike while Maximum Put OI is at 23000 then 22500 strike. Call writing is seen at 23500 then 23000 strike while Put writing is seen at 22300 then 22800 strike. Option data suggests a broader trading range in between 22500 to 23500 zones while an immediate range between 22800 to 23300 levels.

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