F&O expiry outlook 11 Aug: Nifty support at 17000, resistance at 17500; RBI MPC eyed, global cues to set tone

On the index options front, we saw some fresh build-up in 17300 put and 17500 call strike in the coming weekly series.

Nifty, F&O expiry, RBI MPC
As far as derivatives segment is concerned, we saw mixed activity in Nifty and some unwinding was observed in banking index. Image: Pixabay

By Sameet Chavan

The Indian equity market started the day with a decent gap up tracking the positive global cues, wherein the benchmark index inched towards the 17500 mark. But soon after the opening, markets lost their sheen and slid inside the negative terrain. Generally, we term it as a profit booking, but this time it wasn’t the normal move as we saw a complete nosedive around the mid session, which was intimidating at one point. Within a blink of an eye, we not only broke 17400 and 17300 but also went on to thrash the key support of 17200. Fortunately, it did not turn out to be a nightmare, as the mighty bulls came to rescue and defended the territory throughout the remaining part of the session. With the intense tug of war between the bulls and the bears, the Nifty managed to conclude the action-packed weekly expiry almost at Wednesday’s close.

The market took a breather post six consecutive days of its up move, but it was a bit scary at one point. Technically, the bullish structure remains unchanged as the bulls showed their resilience and reciprocated from lower grounds decisively. As far as levels are concerned, 17500 is likely to be seen as a sturdy wall for the bulls, and any persistent breakthrough could only open the gates for further upside for the index.

On the flip side, 17200 has proved its mettle in providing vital support. Still, yesterday’s price activity was a reality check for market participants, which is why we have been reiterating not to get complacent at any point. The immediate support can be seen around 17300.

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As far as derivatives segment is concerned, we saw mixed activity in Nifty and some unwinding was observed in banking index. Stronger hands continued pumping in liquidity in equities but preferred to add some shorts in the index futures segment. On the index options front, we saw some fresh build-up in 17300 put and 17500 call strike in the coming weekly series. Highest open interest concentration is now placed at 17000 put and 17500 call strike.

Also read: Rupee to remain volatile ahead of RBI monetary policy decision, USDINR pair to trade sideways in this range

The RBI monetary policy is slated today, and hence, traders should keep a close eye on the event. Whether it turns out to be a non-event or not, it would really be interesting to watch. Apart from this, global development should also not be overlooked, and hence, we may see some interesting actions going ahead.

(Sameet Chavan is a Chief Analyst-Technical and Derivatives at Angel One. Views expressed are the author’s own. Please consult your financial advisor before investing.)

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