The downward move could accelerate today on the weekly futures & options expiry session as global cues and SGX Nifty suggest a weak opening.
Domestic equity markets snapped their gaining streak on Wednesday to end with losses. S&P BSE Sensex slid 109 points or 0.20% to settle at 54,208 while the NSE Nifty 50 index was down 19 points or 0.12% to end the day at 16,240. Bank Nifty ended 0.40% lower while India VIX fell close to 2%. The downward move could accelerate today on the weekly futures & options expiry session as global cues and SGX Nifty suggest a weak opening. SGX Nifty was down more than 300 points during the early hours of trade.
Global watch: On Wednesday, Bears unleashed their wrath on Wall Street and S&P 500 and Dow Jones registered their worst one-day fall since June of 2020. S&P 500 tanked 4.04% while Dow Jones fell 3.57% and NASDAQ was down 4.73%.
What do the charts say: On the charts, the Nifty 50 index seems to have taken a breather, according to Subash Gangadharan, Senior Technical and Derivative Analyst, HDFC Securities. “The positive MA crossover is still intact as the 20 period MA on the 15 min chart is above the 50 period MA. The Nifty looks set to witness a further pullback rally in the very near term as long as the crucial support of 16071 is not broken,” he added.
Levels to watch out for: Analysts expect heightened volatility on the expiry day. “Riding against the trend may not be beneficial for short term traders. According to volume profile 16100 and 16000 may act as immediate support,” said Om Mehra, Research Associate, Choice Broking. “Bollinger band indicates 16650 would remain strong resistance in coming days. On the other hand, Bank nifty has support at 33400 levels while resistance at 35000 levels,” he added.
FII and DII trades: On Wednesday, Foreign Institutional Investors (FII) were net sellers of domestic stocks, pulling out Rs 1,254 crore. Domestic Institutional Investors (DII) remained net buyers, pumping in Rs 375 crore. FIIs were net buyers of index futures and Index options.
Call and Put open interest: For the May series, Call Open Interest (OI) is the most at 17,000 strike with 40.3 lakh contracts, followed by 16,500 strike with 28.6 lakh contracts. Put OI is maximum at 16,000 strike with 44.7 lakh contracts, followed by 15000 strike.