IGI Logo

Below the Quote on on F&O Expiry by Mr. Chandan Taparia, Senior VP, Equity Derivatives & Technicals, Broking & Distribution, MOFSL 

Nifty index is in sell on bounce mode as index is down by more than 450 points in last 4 trading sessions. Throughout the week, sustained selling was seen from upper levels. Index is taking strong resistance near 24700 zones. It has been forming a series of lower highs and lower lows over the past three days indicates bearish momentum will continue. Index is also trading below all short term moving averages and the current price action suggests that further profit booking may occur before the market finds stability at support levels.

The decline in the long-short ratio from 80% to 32.64% along with FIIs selling over ?90,000 crore indicates continued bearish pressure in the market. Overall as per price structure, till Nifty holds below 24700 zones, bounce could be sold for the downside target towards 24100 zones.

On a weekly basis, the index has formed a bearish Marubozu candle, signalling that the bears have firmly taken control of the market.

On option front, Maximum Call OI is at 25500 then 25000 strike while Maximum Put OI is at 24000 then 24400 strike. Call writing is seen at 24500 then 24400 strike while Put writing is seen at 24400 then 24300 strike. Option data suggests a broader trading range in between 24000 to 25000 zones while an immediate range between 24200 to 24600 levels.

Above views are of the author and not of the website kindly read disclaimer