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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

The strong momentum from last week continued into Monday as Nifty opened with a gap-up around the 23500 zone, followed by sustained buying on every dip. The index extended its gains, making a high of 23869 on Tuesday. However, from the second half of Tuesday, some profit booking emerged at higher levels after a sharp rally of over 1000 points. Today, the index made a low near the 23400 zone found support at the 200-EMA and bounced back strongly to the 23600 zone, clearly indicating the strength of the bulls. Overall, the market stance remains buy on dips with bulls maintaining their dominance despite intermittent corrections. It formed a big bullish candle on weekly chart and gave consolidation breakout of last three weeks.

The FIIs long-short ratio is increased to 33% which shows there is short covering trigger in the market. Increasing Put Call Ratio from lower zone and decreasing India Vix indicates buying at lower levels. Now it has to hold above 23400 zones for an up move towards 23800 then 24000 zones while supports can be seen at 23400 then 23200 zones.

On option front, Maximum Call OI is at 24500 then 24000 strike while Maximum Put OI is at 23500 then 23000 strike. Call writing is seen at 23600 then 24000 strike while Put writing is seen at 23600 then 23300 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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