scorecardresearch

SGX Nifty suggests weak opening on F&O options expiry; 5 things to know before opening bell

On the weekly futures and options expiry, SGX Nifty was down in red, suggesting a continuation of the weak momentum seen in the last two trading sessions.

Global cues were weak during the early hours of Thursday. (Image: REUTERS)

Domestic stock markets ended in the red for the second day running on Wednesday as indices remained volatile. S&P BSE Sensex closed 185 points or 0.33 points lower at 55,381 while the NSE Nifty 50 index fell 61 points or 0.37% at 16,522. However, Bank Nifty closed with gains. On the weekly futures and options expiry, SGX Nifty was down in red, suggesting a continuation of the weak momentum seen in the last two trading sessions. Global cues were weak after Wall Street indices ended in red yesterday.

Global cues: S&P 500 was down 0.75% on Wednesday, followed by NASDAQ and the Dow Jones. Asian stock markets mirrored the fall with Shanghai Composite, Hang Seng, Nikkei 225, TOPIX, KOSPI, and KOSDAQ all in the red. 

What do the charts say: After falling once again on Wednesday, the Nifty 50 formed a small negative candle was formed on the daily chart with upper and lower shadows, said Nagaraj Shetti, Technical Research Analyst, HDFC Securities. “Technically, this pattern indicates a formation of a high wave-type candle pattern, which displays high volatility in the market. Normally, such high wave formations after a reasonable up-move or down moves act as an impending trend reversal. But, having formed this pattern within a range movement, the predictive value of this pattern could be less,” he said.

Levels to watch out for: “Coming to the OI Data, on the call side, the highest OI observed at 16800 followed by 16900 strike price while on the put side, the highest OI was at 16300 strike price,” said Om Mehra, Research Associate, Choice Broking. “Overall Nifty may find support around 16300 levels followed by 16250, while on the upside 16700 may act as an immediate resistance,” he added. Meanwhile, Nagaraj Shetti is suggesting a buy on dip strategy. “The near term upside target remains intact at 16800 levels,” he said.

FII and DII trades: Foreign Institutional Investors (FII) were net sellers of domestic stocks, pulling out Rs 1,930 crore. Domestic Institutional Investors (DII) were net buyers, pumpkin in Rs 984 crore. 

Call and Put OI: For the June series, 17000 strike price has the highest open interest (OI), followed by 17500. Put OI is the most at 16000 strike, followed by 15500. 

Get live Share Market updates and latest India News and business news on Financial Express. Download Financial Express App for latest business news.

Most Read In Market