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Derivative View for Weekly Expiry – September 23, 2021

September 23 2021 | Reading Time: 5 Minutes
Indian benchmark indices may open on a positive note today. At 8:15 am IST, SGX Nifty Futures was trading at 17,653, compared with Nifty’s close of 17,547 yesterday., indicating a positive opening for the bourses. 
 
Nifty Futures – LTP 17,568
 
Nifty touched an all-time high of 17,792 and witnessed some selling pressure at higher levels. However, after it touched its key support level of 17,350, the index continued its upward trend despite weakness in the global markets. Yesterday, Nifty opened flat and remained volatile throughout the session. The benchmark traded in a narrow range of 17,524–17,610 and ended at 15,547. However, the broader markets outperformed the benchmark as the Nifty Midcap100 and Smallcap100 indices closed over a percent higher each. 
 
On the options data front, PCR for weekly contracts expiring September 23 stands at 1.38. From the OI data, maximum Call OI built up was seen for 18,000 strike price, followed by 17,700 strike price, amounting to 121.98 lakh contracts and 94.56 lakh contracts, respectively. Likewise, maximum Put OI built up was seen for 17,000 strike price, followed by 17,500 strike price, which amounts to 74.64 lakh contracts and 70.64 lakh contracts, respectively. The volatility Index, India Vix, gained 14% to 16.49 last week. 
 
After considering the above technical and option data, we expect the index to trade upward with positive bias. However, it may face resistance in the range of 17,700–17,750.
 
BankNifty Futures: LTP – 37,100
 
BankNifty has been trading sideways for the past four weeks, facing resistance near the range of 38,000–38,200. It has formed four consecutive bearish candles in the past four weeks. However, it is still trading above its 200-, 50-, and 21-DMA. The momentum indicator RSI plotted on the daily chart is currently placed at 56 in a downward slope.
 
On the options data front, PCR for contracts expiring September 23 stands at 0.93. From the OI data perspective for weekly contracts expiring on September 23, maximum Call OI built up was seen for 37,000 strike price, followed by 38,500 strike price, which amounts to 99.46 lakh contracts and 96.28 lakh contracts, respectively. Likewise, maximum Put OI built up was seen for 37,000 strike price, followed by 36,500 strike price, which amounts to 77.44 lakh contracts and 63.47 lakh contracts, respectively. 
 
After considering the above technical and option data, this sectoral index may trade in the range of 37,800–36,700 with a sideways kind of bias.
 
Bullish setup in stocks such as, Godrej Properties, DLF, Balkrishna Industries, Apollo Tyres among others.
 
Bearish setup in stocks such as Indraprastha Gas, Gujarat Gas, Mahanagar Gas among others.

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