F&O expiry outlook: Nifty looks set to hit 18200; Bank Nifty may rally up to 38300 this expiry week

F&O Expiry Outlook:NSE Nifty 50 index is eyeing 18100-18200 target, and Bank Nifty 38000-38300 target in the current week to 13 January 2022 options expiry, said analysts

Nifty, Bank Nifty, stock markets
Indications in Nifty 50 index are in the favor of marginal consolidation after the recent surge but the bias would remain on the positive side till it holds 17,400 zone

NSE Nifty 50 index is eyeing 18100-18200 target, and Bank Nifty 38000-38300 target in the current week to 13 January 2022 options expiry, said analysts. In today’s session, Nifty 50 was trading over half a per cent higher at 17,830.65, while Bank Nifty topped 37,800. Nifty has witnessed a decent recovery in the last three weeks and recently surpassed the hurdle of 17,650 zone. Analysts say that it is currently trading comfortably above the support zone of the moving averages ribbon as well. Both Nifty 50 and Bank Nifty ended the previous weekly F&O expiry on a negative note. Nifty settled 6th January expiry at 17,745, and Bank Nifty at 37,490.25 levels.

Check live levels: Nifty 50 | Bank Nifty

Ajit Mishra, VP – Research, Religare Broking

Indications in Nifty 50 index are in the favor of marginal consolidation after the recent surge but the bias would remain on the positive side till it holds 17,400 zone. We advise utilising dips to create longs for the upside potential of 18,000-18,100. While among the key sectors, the Banking index has played a critical role in the recent recovery and we expect this trend to continue. It has the potential to test the 38500+ zone in the coming sessions. In case of any dip, the 36200-36700 zone would provide the cushion. In line with the Nifty, traders should continue with the ‘buy on dips’ approach.

Rajesh Palviya, VP – Research (Head Technical & Derivatives), Axis Securities

On the daily chart, the Nifty 50 index formed a bearish candle with either side shadows in the previous session indicating volatility throughout the session. The index is moving in a Higher Top and Higher Bottom formation on the daily chart indicating a sustained up trend. The chart pattern suggests that if Nifty crosses and sustains above 17800 level it would witness buying which would lead the index towards 18100-18200 levels. However, if the index breaks below 17700 level it would witness selling which would take the index towards 17600-17500. Nifty is trading above its 20 day SMA which indicates positive bias in the short term. Nifty continues to remain in an uptrend for the short term, so buying on dips continues to be our preferred strategy. The daily strength indicator RSI is moving upwards and is above its reference line indicating positive bias.

While Bank Nifty index formed a small bullish candle with shadows on Thursday on either side on the daily chart, representing extreme volatility as well as indecisiveness amongst participants regarding the direction. The index is moving in a Higher Top and Higher Bottom formation on the daily chart indicating a short term up trend. The chart pattern suggests that if Bank Nifty crosses and sustains above 37600 level it would witness buying which would lead the index towards 38000-38300 levels. However if the index breaks below 37400 level it would witness selling which would take the index towards 37200-36900. Bank Nifty is trading above its 200 day SMA (35728) which indicates positive bias in the short  term. Bank Nifty continues to remain in an uptrend in the long term, so accumulation on dips and near major support zone continues to be our preferred strategy. The daily strength indicator RSI is moving upwards and is above its reference line indicating positive bias.

Milan Vaishnav, CMT, MSTA, Consulting Technical Analyst and founder, Gemstone Equity Research & Advisory Services

The new Options series has opened much on the expected lines. Today, high PUT writing was seen at 17800, but max PUT continued to remain at 17500. However, it would be crucial to see if Nifty stays above 17800 levels given the amount of put writing. On the other hand, max Call OI stayed constant at 18000. This means that the most immediate trading range is 17800-18000 for Nifty. Weakness may come if 17800 is violated. Otherwise a rangebound days can be expected.

For Bank Nifty, 38000 is expected to act as inflection point. This strike level is seeing both Call and Put writing being done today. The direction on the either side will be established depending upon if the Bank Nifty index is able to take out and move above 38000 levels or not. 38000 also has max Call OI concentration and hence act as an most immediate resistance point for the Bank Nifty.

(The recommendations in this story are by the respective research analysts and brokerage firms. Financial Express Online does not bear any responsibility for their investment advice. Capital markets investments are subject to rules and regulations. Please consult your investment advisor before investing.)

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