Monthly Expiry Day! Levels to Watch in NIFTY - Pre-Market Analysis Report

What Happened Yesterday?

NIFTY started the day with a small gap-down at 21,195 and went on to move up. HDFCBANK and Reliance contributed well to the index. After the initial rally, the index fell back to opening level by noon. It bounced back once again in the last 3 hours and NIFTY closed the day at 21,453, up by 215 points or 1.01%.

U.S. markets closed mixed. The European markets closed in the green.

What to Expect Today?

Asian markets are trading mixed.

The U.S. Futures are trading in green.

GIFT NIFTY is trading flat at 21,450.

All the factors combined indicate a flat opening in the market.

NIFTY has supports at 21,400, 21,340 and 21,210. We can expect resistances at 21,480, 21,580 and 21,690.

In NIFTY, one of the highest put OIs is at 21,400 and one of the highest call OIs is at 21,700. PCR is bearish at 0.81.

BANKNIFTY has supports at 44,900, 44,600 and 44,280. We can expect resistances at 45,230, 45,470 and 45,635.

In BANKNIFTY, one of the highest put OIs is at 45,000 and one of the highest call OIs is at 45,500. PCR is bearish at 0.58.

Foreign Institutional Investors net-sold shares worth Rs 6,934 crores. Domestic Institutional Investors net-bought shares worth Rs 6,012 crores.

INDIA VIX fell to 14.37.

It is the monthly expiry day once again. Both NIFTY and BANKNIFTY are expiring on the same day after a very volatile January.

Yesterday, BANKNIFTY took almost perfect support at the 200-EMA and bounced back up. But the bounce was not strong enough, and the level might get tested again.

And there is still good put writing which happened yesterday, despite PCR showing bearish. 

So BANKNIFTY and IT index is where my eyes will be for the week. Expiry day option selling has become somewhat tough in the high VIX environment we are in now.

So keep a watch out for 44,600 support in BANKNIFTY. If broken, we may see a quick fall once again in the index. On the upper side, 45,500 can be watched.

For NIFTY, breaking 21,580 on the upper side will be a good indication that there is still a lot of strength before next Thursday’s budget announcement.

Will be having minimal trades for the monthly expiry today.

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Make sure that you tune in to The Stock Market Show at 7 PM on our YouTube channel. All the best for the day!