Interesting news: Formation of a convenient long-legged Doji candle on Budget day. What Traders Should Do on Thursday Expiry
For now, it needs to hold above 17,777 zones, to rally to the 17,950 then 18,018 zones while support levels are located in the 17,500 and 17,350 zones, said Chandan.
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Prior to Thursday’s weekly derivative expiration, the maximum open interest (OI) was built at 17,000 Puts and 18,000 Calls. Maximum OI gain is 17,500 Puts and 18,000 Calls, followed by 18,200 Calls.
The PCR rate for the nearest week expiration is 0.54 and for the next week’s expiration is 0.68. The overall write data shows a negative trend because Call writing is higher than Put writing. The possibility of an immediate or temporary recovery cannot be ruled out, analysts said, as the PCR rate dropped to near 0.50.
Options data shows a wider trading range between the 17,200 and 18,200 zones while the immediate trading range is between 17,350 and 17,900 due to higher volatility.
What should traders do? Here’s what the analysts had to say:
Rohan Patil, Technical Analyst, SAMCO Securities
Research on the weekly time frame moving averages shows that Nifty is trading at a make or break near its 50 EMA, which is set at 17,400. A close below 17,400 – 17,300 could accelerate the decline towards 17,000 – 16,800, which was the previous support area for the benchmark index. On the other hand, resistance is capped below the 18,100 level and if the price breaks through that level, the 18,300 level will be the next resistance.
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities
At this time, 17,750 will act as a resistance and below this level the index can retest the levels of 17,400-17,350. On the downside, above 17,750 we could see a continuation of a rally towards 17,850-17,900. On breaking out of 17,350/58,700, it will slide further towards 17,250-17,200.
Nagaraj Shetti, Technical Research Analyst, Stocks
Nifty’s short-term trend is volatile. Having turned smart from the lows of the last few times, it is likely that Nifty will retest the critical 17,800 resistance in the near term. Further sustainable growth is only possible above this barrier.
(Disclaimer: Recommendations, suggestions, views and opinions expressed by experts are their own. These do not represent the views of The Economic Times. )