Derivative View for Monthly Expiry – November 25, 2021
November 25 2021 | Reading Time: 5 Minutes
Indian benchmark indices may open on a flat note today. At 8:15 am IST, SGX Nifty Futures was trading at 17,431 compared with Nifty’s close of 17,415 yesterday, indicating a muted opening for the bourses.
Nifty Futures – LTP 17,415
Nifty has breached its 50-DMA and the “head and shoulder pattern” neckline last Thursday. After the breakdown, Nifty made a low at 17,200 levels and had a sharp pullback rally on Tuesday. Nifty has been making a lower-low, lower-high price formation on the weekly chart, indicating bearish sentiment. The momentum indicator RSI and MACD trending on a downward slope indicate negative bias.
On the options data front, PCR for monthly contracts expiring November 25 stands at 0.58. From the OI data for monthly contracts expiring on November 25, maximum Call OI built up was seen for 18,000 strike price, followed by 17,500 strike price, which amounts to 151.83 lakh contracts and 134.35 lakh contracts, respectively. Likewise, maximum Put OI built up was seen for 17,000 strike price, followed by 17,300 strike price, which amounts to 111 lakh contracts and 81.49 lakh contracts, respectively.
After considering the above points, we expect the index may remain trading volatile with negative bias. It has support at 17,300–17,250 followed by 17,000. However, from a monthly expiry perspective, the index may remain trading choppy in the range of 17,600–17,300. A breakout from either side may lead the index in the same direction for another 150–200 points gain/loss.
BankNifty Futures: LTP – 37,441
Bank Nifty has been in a downtrend since the last week of October and is forming a lower-low, lower-high price formation on the daily chart. On Monday and Tuesday, it breached its 100-DMA briefly, but managed to close above it. The momentum indicator RSI and MACD have already turned negative and are not showing any sign of positivity.
On the options data front, PCR for contracts expiring November 25 stands at 0.77. From the OI data perspective for monthly contracts expiring on November 25, maximum Call OI built up was seen for 38,000 strike price, followed by 39,000 strike price, which amounts to 105.49 lakh contracts and 81.87 lakh contracts, respectively. Likewise, maximum Put OI built up was seen for 37,000 strike price, followed by 36,000 strike price, which amounts to 84.80 lakh contracts and 66.64 lakh contracts, respectively.
After considering the above technical parameters and options data, this major sectoral index is trading with a negative bias. Currently, it is trading in a broad range of 38,200–37,000. For the next one to two days, we expect it to remain trading in this range. Furthermore, the overall bias is negative in this major index.
Bullish setup in stocks such as Zee Entertainment, Adani Ports and Special Economic Zone, Adani Enterprises, Torrent Power among others.
Bearish setup in stocks Pidilite Industries, PVR, Muthoot Finance, Indusind Bank such as among others.
Nifty Futures – LTP 17,415
Nifty has breached its 50-DMA and the “head and shoulder pattern” neckline last Thursday. After the breakdown, Nifty made a low at 17,200 levels and had a sharp pullback rally on Tuesday. Nifty has been making a lower-low, lower-high price formation on the weekly chart, indicating bearish sentiment. The momentum indicator RSI and MACD trending on a downward slope indicate negative bias.
On the options data front, PCR for monthly contracts expiring November 25 stands at 0.58. From the OI data for monthly contracts expiring on November 25, maximum Call OI built up was seen for 18,000 strike price, followed by 17,500 strike price, which amounts to 151.83 lakh contracts and 134.35 lakh contracts, respectively. Likewise, maximum Put OI built up was seen for 17,000 strike price, followed by 17,300 strike price, which amounts to 111 lakh contracts and 81.49 lakh contracts, respectively.
After considering the above points, we expect the index may remain trading volatile with negative bias. It has support at 17,300–17,250 followed by 17,000. However, from a monthly expiry perspective, the index may remain trading choppy in the range of 17,600–17,300. A breakout from either side may lead the index in the same direction for another 150–200 points gain/loss.
BankNifty Futures: LTP – 37,441
Bank Nifty has been in a downtrend since the last week of October and is forming a lower-low, lower-high price formation on the daily chart. On Monday and Tuesday, it breached its 100-DMA briefly, but managed to close above it. The momentum indicator RSI and MACD have already turned negative and are not showing any sign of positivity.
On the options data front, PCR for contracts expiring November 25 stands at 0.77. From the OI data perspective for monthly contracts expiring on November 25, maximum Call OI built up was seen for 38,000 strike price, followed by 39,000 strike price, which amounts to 105.49 lakh contracts and 81.87 lakh contracts, respectively. Likewise, maximum Put OI built up was seen for 37,000 strike price, followed by 36,000 strike price, which amounts to 84.80 lakh contracts and 66.64 lakh contracts, respectively.
After considering the above technical parameters and options data, this major sectoral index is trading with a negative bias. Currently, it is trading in a broad range of 38,200–37,000. For the next one to two days, we expect it to remain trading in this range. Furthermore, the overall bias is negative in this major index.
Bullish setup in stocks such as Zee Entertainment, Adani Ports and Special Economic Zone, Adani Enterprises, Torrent Power among others.
Bearish setup in stocks Pidilite Industries, PVR, Muthoot Finance, Indusind Bank such as among others.
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