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Derivative View for Weekly Expiry – September 16, 2021

September 16 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 17,529, compared with Nifty’s close of 17,319 yesterday, indicating a flat opening for the bourses.
 
Nifty Futures – LTP 17,535
 
Nifty touched an all-time high at 17,532 after six days of consolidation. Yesterday, the union cabinet approved a production-linked incentive scheme for the auto sector and relief measures for telecom companies, which helped Nifty scaled into new highs. Buying interest was seen across all sectors except Media. As a result, Nifty made a large bullish candle with higher-high and higher-low formation yesterday.
 
On the options data front, PCR for weekly contracts expiring September 16 stands at 1.32. From the OI data perspective for weekly contracts expiring September 16, maximum Call OI built up was seen for 17,500 strike price, followed by 17,600 strike price, which amounts to 94.48 lakh contracts and 89.14 lakh contracts, respectively. Likewise, maximum Put OI built up was seen for 17,400 strike price, followed by 17,500 strike price, which amounts to 126.55 lakh contracts and 114.82 lakh contracts, respectively. The volatility Index, India Vix, remained flat at 14.41.
 
After considering the above technical and options data, the index is in a bullish trend and we recommend to follow “Buy on Dips” strategy. We expect 17,600–17,700 may act as a resistance zone. On the flip side, the index has support at 17,350 followed by 17,250.
 
Bank Nifty Futures: LTP – 36,968
 
Bank Nifty broke out in the last week of August. Post breakout, it made a high of 37,140 but went sideways and is not showing any strong momentum. The index is facing resistance at 37,000–37,300 level as of now. Currently, it is trending above its all key moving averages and there is no sign of weakness as such. A fresh call can be taken once the index surpasses and sustains above its immediate resistance. However, immediate support is placed at 36,200–36,000. Breaching this level may turn the sentiment negative. 
 
On the options data front, PCR for contracts expiring September 16 stands at 0.89. From the OI data perspective for weekly contracts expiring September 16, maximum Call OI built up was seen for 37,000 strike price, followed by 38,000 strike price, which amounts to 86.40 lakh contracts and 63.65 lakh contracts, respectively. Likewise, maximum Put OI built up was seen for 36,500 strike price, followed by 36,700 strike price, which amounts to 71.23 lakh contracts and 59.23 lakh contracts, respectively.
 
After considering the above technical and options data, index may trade in the range of 37,500–36,200 with sideways kind of bias.
 
 
Bullish setup in stocks such as,   GAIL, LTTS, LTI, HCLTECH, EICHERMOT, VOLTAS among others.
 
Bearish setup in stocks such as GRANULES, APLLTD, MANAPPURAM, NMDC   among others.

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