F&O expiry outlook: Nifty set to hit 17500, Bank Nifty must hold above 37000 for further rally

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September 03, 2021 11:11 AM

NSE Nifty 50 index is eyeing 17500 target in the current week to 9 September options expiry

Nifty, Bank Nifty, stock marketWithin the banking sector, analysts see private banks leading the surge while the contribution is restricted from the PSU pack

NSE Nifty 50 index is eyeing 17500 target in the current week to 9 September options expiry. In today’s upbeat session, Nifty 50 hit a new all-time high of 17311.95, while Bank Nifty topped 37100. Analysts expect Bank Nifty to outgun Nifty 50 index and hit a fresh high of 37900 during this week’s expiry. Within the banking sector, analysts see private banks leading the surge while the contribution is restricted from the PSU pack. “We suggest maintaining the ‘buy on dips’ approach till it holds above the 36200 zone and advise giving preference to the private banking majors,” Ajit Mishra, VP – Research, Religare Broking, told Financial Express Online. Both Nifty 50 and Bank Nifty ended the previous weekly F&O expiry on a positive note. Nifty settled 2nd September expiry at 17234.15, and Bank Nifty at 36831.30 levels.

Check live levels: Nifty 50Bank Nifty

Ajit Mishra, VP – Research, Religare Broking

Nifty has been witnessing a steady up move after the breakout of the 16,000 resistance zone in early August with intermediate corrective phases. We’re seeing noticeable buying interest in index majors across sectors on a rotational basis, which is not only capping the downside but also helping the index to maintain the prevailing momentum. We are now eyeing 17,500 in Nifty. In case of any dip, the 17,200-17,050 zone would act as support.

Bank Nifty has witnessed a breakout from a 2-month long consolidation channel of late and looks upbeat to inch gradually towards its record high i.e. 37,700+ zone. Within the sector, private banking names are leading the surge while the contribution is restricted from the PSU pack. We suggest maintaining the “buy on dips” approach till it holds above the 36,200 zone and advise giving preference to the private banking majors.

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

The outlook for Nifty as per the weekly options data looks pretty much mixed. Today, since morning, the strike of 17300 has seen maximum both CALL and PUT writing; whereas the 17300 holds the highest Call Open Interest. Unless this changes, the Nifty is set to face resistance in the 17300-17350 zones. Maximum PUT OI stands at 17200. So, unless there is a major tactical change in the OI, the Nifty may witness a range-bound expiry week.

Bank Nifty looks more buoyant on a relative basis. 37000 has seen highest PUT writing today; this indicates this level may well be good support. But at the same time, 37000 also holds maximum Call OI. This hints that the 37000 level may be an inflection point for Bank Nifty. If Bank Nifty keeps its head above 37000 for long, we may see some more upside happening in this index.

Ashis Biswas, Head of Technical Research at CapitalVia Global Research- Investment Advisor

Our research suggests that with the current inflow of money from the bigger institutions in India. We can expect the market to remain positive. With the speedy economic recovery we can expect the Nifty to trade till the level of 17400-17450 within this week and Bank Nifty can outperform Nifty with all major banks looking good in short term and can achieve the level of 37800-37900 in this week’s expiry.

(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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