17,960-18,220 to be the ‘Max Range’ for Expiry Day? - Post-Market Analysis
NIFTY opened the day at 18,084 with a gap-down of 47 pts. The index showed some upside momentum but moved in a tight range. Nifty closed the day at 18,122, down by 9 points or 0.05%.
BANK NIFTY started the day at 42,73 with a gap-down of 125 pts. The index tested 43,000 multiple times and consolidated below it. Bank Nifty closed the day at 42,827, down by 31 pts or 0.07%.
FIN NIFTY started the day at 18,956 with a gap-down of 54 pts. Even though it broke the 19k level, 19,040 entered as a villain. Fin Nifty closed the day at 18,982, down by 28 pts or 0.15%.
Nifty Auto (+0.66%), Nifty Media (+0.62%), Nifty Pharma (-0.56%) and Nifty Realty (+0.49%) closed with small, but notable changes
Hong Kong gained 1.5% after the long holidays. Other major Asian Markets closed in the red. The UK market is outperforming others now. Other European Markets are trading flat.
Titan (+3%) closed as the Nifty 50 Top Gainer.
Bharti Airtel (-1.3%) ended as the Nifty 50 Top Loser.
From Nifty PSU Bank, Maharashtra Bank (-3.8%), Central Bank (-2.7%), Indian Bank (-3.1%), B (-3.4%), UCO Bank (-3.2%) and Union Bank (-4%) closed in the red.
RVNL (+5%-UC) closed in the green as it was appointed as the project implementation agency for the UTF Harbor project in Maldives
Chambal Fertilizer (+2.8%) gained after the promoter unpledged 7 lakh shares. FACT (+10%), RCF (+14.8%), GSFC (+10.2%) and Deepak Fert (+7.8%) also moved up.
Lemon Tree Hotels (+4.3%) signed a franchise agreement for a 32-room property in Dehradun.
Let's do some technical analysis.
- Longer time frame candles indicate that 18,180-220 is going to be a major resistance for Nifty. Also, we have the highest Call OI there.
- On the downside, 18,060 will be immediate support. But the 17,950-960 zone will be more reliable.
- In Bank Nifty, there would be a struggle on the upside. 43,030 level and 43,330-360 zone can be watched. I expected a very strong rejection if it hits the 43,450-500 range this expiry.
- Even if Bank Nifty breaches 42,370 support, 42,220 would save the index.
- For Fin Nifty 19,160-200 zones should be watched.
Based on the above observation I feel like 17,960-18,220 would be the max range for expiry tomorrow. But always keep an eye on any short covering.
It was a peaceful day and a good opportunity for option sellers. What’s your story today? Share your answers in the comment section below.