Hello reader, hope you’re doing well. Yesterday’s expiry was a pretty straightforward one, with the volatility kicking in, in the final hour of trading. All those who were trapped at 18000 and 18050 levels on the CE side ended up getting a good exit, and these would most likely be the big players out there. With VIX still going lower, option sellers will have to keep tight SLs on their trades, else a sudden spike will cause premiums to jump very quickly, which will be tough to handle.
Important points to note:
- Nifty is opening gap down today, under 18000, but a jump back above will result in gap filling and that gives a better chart structure for further upside.
- First hurdle of 17973 crossed, next major resistance to be crossed will be the zone of 18200-300 (as shown below)
- Nifty Auto and Nifty PSE being the stronger sectors in this turnaround for now.
- Reliance has been another major contributor to this rally, but a continuation of the move is needed to play out for bigger targets.
- 18000 to act as a very important pivot level for now, with highest OI concentration being spotted here – 2L contracts on the PE side and 1.9L contracts on the CE side.
- DLF can be a good bet for the medium term above 380, with SL as 340, a low RR trade setup.
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.
Very informative Sourabh