Are put sellers being overly aggressive in BANKNIFTY expiry? – Report on Pre-Market Analysis


Yesterday’s Updates

NIFTY attempted to move lower after beginning the day flat at 21,111. At Friday’s peak, there was strong support, and by midday, the market had returned to its peak. A new all-time high was reached at the end of the day with a fantastic surge. NIFTY gained 74 points, or 0.34%, to end the day at 21,196.

US stock markets ended the day lower. Mixed results were reported when the European markets closed.

Today’s Expectation

The majority of trade in Asian markets is in red.

The US Futures are moving little lower right now.

At 22,253, the GIFT NIFTY is trading flat.

When taken as a whole, the indicators point to a flat market opening.

The supports for NIFTY are at 22,080, 22,020, and 21,955. Resistances are likely to be found at 22,250, 22,300, and 22,350.

The supports for BANKNIFTY are 46,950, 46,700, and 46,470. Resistances are likely to be found at 47,200, 47,420, and 47,600.

There is substantial call OI resistance in NIFTY at 22,200. The OI support is high, at 22,000. At 1.21, PCR is bullish.

There is a high call OI resistance at 47,500 in BANKNIFTY. At 47,000, there is a substantial put OI support. At 1.55, PCR is quite bullish.

In value of Rs -1,335.51 crores, shares were net-sold by foreign institutional investors. The net purchase price of shares by domestic institutional investors was Rs 1,491 crores.

VIX INDIA increased to 16.07.

The market experienced yet another breakthrough, as private banks continued to show strength. Axis Bank, Kotak Bank, and HDFC Bank each contributed two thirds of NIFTY’s move.

Both FINNIFTY and BANKNIFTY made wise decisions!

With the high VIX, there are competitive premiums available everywhere in the market. The entire premium of the BNF 47,000 straddle for today’s expiry is more than 450 points. Therefore, I wouldn’t be concerned about BANK NIFTY making a significant move for roughly plus or minus 450 points of the 47k line.

Beyond this, though, a very wise decision should be anticipated. Anticipate some erratic trading at the end of the day ahead of tonight’s Fed Minutes release. Pay close attention to the OI data all day long!

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