F&O expiry: Nifty settles above 17200, Bank Nifty holds above 35000; check support, resistance levels

BSE Sensex and Nifty 50 ended in the negative territory for the second consecutive day on the day of weekly futures and options expiry, which also happens to be December month’s derivative expiry.

sensex, nifty, bank nifty
It has been quite a volatile month for Nifty, wherein Nifty fell to a low of 16,400 at the same time has also seen a high of 17,600. Image: Pixabay

BSE Sensex and Nifty 50 ended in the negative territory for the second consecutive day on the day of weekly futures and options expiry, which also happens to be December month’s derivative expiry. BSE Sensex fell 12.17 points to end at 57,794.32, while the Nifty 50 index also ended flat at 17,203 with a negative bias. Bank Nifty finished trade at 35,063.60, up 0.05 per cent. Stocks such as Reliance Industries Ltd (RIL), Tata Steel, Bajaj Finance, State Bank of India (SBI), Maruti Suzuki, among others contributed the most to indices loss. In the broader markets, S&P BSE MidCap ended 54.05 points or 0.22 per cent down at 24,630.81, while Smallcap index settled 55 points or 0.2 per cent up at 29,121.04. India VIX was up nearly 2 per cent to 16.57 levels.

Rahul Gupta, AVP-Derivative Sales, Institutional Equity, Emkay Global Financial Services

It has been quite a volatile month for Nifty, wherein Nifty fell to a low of 16,400 at the same time has also seen a high of 17,600. Currently, it looks like Nifty is going to end 1-1.5% up for the month of December. FIIs have sold equities worth almost $2.7 billion in the month of December. This is the 3rd consecutive month wherein FIIs would be the net sellers. Overall, FIIs continue to be the net sellers for the entire year 2021. Going forward the key technical level to watch out for Nifty would be 17,600; a break of 17600 will ensure a fresh rally and a break of 16800 will ensure a fresh selling in the market. So as of now, Nifty looks to be in a range of 16800-17600. Going forward two important things to watch out for in the market, one is the spread of the new variant Omicron and at the same time how the Fed policy panes out. The Fed has already indicated three rate hikes in 2022. From the expiry perspective, the fair roles should be around 34-35 bps this month.

Mohit Nigam, Head – PMS, Hem Securities

On the technical front, overall structure looks positive for Nifty 50 as it manages to sustain above 17200 level on a closing basis which is a positive sign for the index technically and we believe we can witness a 200-300 points rally from here in near term. 17000 and 17400 are immediate support and resistance in Nifty. For Bank Nifty, 34500 and 35500 are immediate support and resistance.

Sachin Gupta, AVP — Research, Choice Broking

On the technical front, the index has been trading in falling channel formation, crossing above the upper band of formation can show an upside rally in the counter. Moreover, the index has been trading above 21 & 50-HMA which suggests strength in the counter. A momentum indicator Stochastic & MACD is trading with a positive crossover on the daily time-frame. At present, the Index has support at 17000 levels while resistance comes at 17300 levels, crossing above the same can show 17400-17500 levels. On the other hand, Bank nifty has support at 34500 levels while resistance at 35500 levels.

Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments

The markets failed to close above the 17250-17300 zone. The Nifty is in a make-or-break situation. Either we get past 17300 on a closing basis and move higher towards 17600-17800 or we make a U turn and head southward towards 16800 which is strong support for the index. Weakness will emanate if we break 16800 on a closing basis.

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