Gains in index heavyweights such as Bajaj Finance, Eicher Motors and HDFC Bank, among others, pushed Nifty 50 index above 16,700 level for the first time ever. NSE Nifty 50 is likely to remain in the 16650-16750 range on weekly futures & options expiry day, while 36000 will act as an important level for Bank Nifty. Analysts expect the Bank Nifty index to settle around this level on Wednesday. Gains in index heavyweights such as Bajaj Finance, Eicher Motors and HDFC Bank, among others, pushed the Nifty 50 index above 16,700 level for the first time ever. Bank Nifty surged to 36248.90 levels. “As far as options data is concerned for Nifty, 16600-16650 put writers are looking convinced and hence we do not expect the expiry to pan out below this range. On the flip side, as of now, there is no indication of surpassing 16700-16750 either,” Sameet Chavan, Chief Analyst – Technical and Derivatives, Angel Broking, told Financial Express Online.
On Nifty options, the maximum Call OI is at 16700 strike with 1,60,055 contracts, followed by 16750 strike price. While maximum Put OI is at 16500, followed by 16600. Call writing was seen at 16750 and 16700 strikes, while Put writing was seen at 16650, then 16600 strikes. Call unwinding was at 16600 strike and put unwinding was seen at 16000. For Bank Nifty options, the highest open interest on the call side in the weekly expiry is at 36000, followed by 36100 strike; while the highest OI on the put side is at 35800-36000 strike.
Sameet Chavan, Chief Analyst – Technical and Derivatives, Angel Broking
Despite mixed global cues, our market started the weekly expiry session on a strong note. The major catalyst for this bump up was banking giant HDFC Bank. The stock had a positive newsflow which lifted the overall sentiments in the banking space. Hence, all eyes on Bank Nifty whether it manages to surpass the sturdy wall of 36200-36300 or not. This will provide the overall impetus for the market. As far as options data is concerned for Nifty, 16600-16650 put writers are looking convinced and hence we do not expect the expiry to pan out below this range. On the flip side, as of now, there is no indication of surpassing 16700-16750 either. Hence if any unwinding has to happen from call writers, the banking needs to break out upwards.
Milan Vaishnav, CMT, MSTA, Consulting Technical Analyst and founder, Gemstone Equity Research & Advisory Services
Just like it has been doing over previous days, Nifty has again shifted its base higher. There is high addition of PUT OI on 16600 and 16650 levels. This indicates that the Nifty has support in this zone. On the higher side though, 16750 has seen high Call OI. This indicates the creation of a resistance point. Today is the weekly options expiry and Nifty is expected to stay in the 16650-16750 zone.
Bank Nifty on the other side is seeing opening up its upside potential. It has seen high PUT OI addition at 36000; by doing this it has dragged its support higher at 36000. IT faces resistance at 36500 going by the Call OI taking place in the 36400-36500 strikes.
Santosh Meena, Equity Research Head, Swastika Investmart
Nifty manages to cross the hurdle of 16650 and prepares itself for the next target of 16900. There is a tussle between bulls and bears near the 16700 level ahead of weekly expiry as both call and put writers are active around this level but bulls have an edge of momentum and if Nifty manages to trade above 16700 level then we can expect another 50-100 points upside otherwise we can expect expiry to settle between 16650-16700 zone.
Bank Nifty fails to hold momentum near the 36200-36300 resistance zone while 36000 is a critical juncture as the highest OI on both call and put option side is placed at the 36000 mark. It may remain in the range of 35800-36200 and may try to settle around the 36000 mark on expiry day.
(The recommendations in this story are by the respective research analysts and brokerage firms. Financial Express Online does not bear any responsibility for their investment advice. Capital markets investments are subject to rules and regulations. Please consult your investment advisor before investing.)
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