Hello reader, hope you’re doing well. Today being the penultimate expiry day of the February series, there can be a slight bit of volatility expected, and with today’s gap up opening, we will end up seeing quite a few people trapped with their shorts on the CE side.
Important points to note:
Nifty 50:
- Nifty finally has crossed and closed above the budget day high of 17973, giving a close at 18016 yesterday, which is the first sign of a trend change in the short term outlook. (chart shared below)
- With today’s gap-up opening, there would be quite a few people trapped on the CE side, plus this can bring in more short covering from current levels.
- Next key resistance to cross for more upside would be the 18170-18190 band.
Banknifty:
- This index, on the other hand is currently hovering around it’s 20 EMA levels, which also happens to be the upper limit of the budget day candle, at 42015. (chart shared below)
- As mentioned in earlier posts, for a breakout, we’ll need a proper upmove from the heavyweights, HDFC Bank and ICICI Bank, as PSU banks will now take a back seat after being outperformers in the previous quarter.
- SBI is another good candidate post bounce from a major support levels of 500-520.
Open Interest data:
- Highest OI points on Nifty – 18200 CE, 18150 CE, 18000 PE and 18100 PE, all above 1.2cr in value.
- Highest OI points on Banknifty – 42000 CE and 41500 PE.
- 41900 can be key resistance to cross for today with 65L OI being the number currently.
- PCR level for today is 1.4, but expiry bias to play a huge role here.
Have a good trading day, and may the force be with you!
Disclaimer: this post is for educational purposes only, we are not SEBI registered analysts. Trades mentioned here are not trade recommendations. Equity Investments are subject to 100% market risk, please consult your financial advisor before investing.
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