F&O expiry week outlook: Nifty to hit 16000 if it closes above 15700, follow stock centric approach for gains

By Sameet Chavan

The Indian equity current market has found an immensely unstable weekly expiry session on Thursday, wherein the benchmark index begun the session on an optimistic be aware. The preliminary buoyant move in the index bought aggressively offered into, dragging it toward the day’s very low, but quickly soon after, it recouped from the lows and when again cheered the over-all sentiments. With all working day-extensive roller-coaster moves, the NSE Nifty 50 last but not least concluded the working day in inexperienced, with gains of in close proximity to a %, a tad previously mentioned the 15550 level.

Technically, the sector has attracted the trader’s community with its volatility, and also, considerable sectors have witnessed robust moves that have included the cherry on the cake. Having said that, the inherent development stays tentative as the index hovers down below the essential zone of 15700. As considerably as degrees are involved, the 15300-15350 zone is predicted to cushion any kind of correction in the in the vicinity of expression. While on the contrary, until eventually a decisive breakthrough is not seen previously mentioned the 15700 zone, the complicated interval is probably to persist in the industry.

A broad-based buying has been observed across the bourses on the sectoral front, wherein the important benefactors that boosted the constructive sentiments ended up from the Auto space, adopted by IT. Seeking at the modern growth, traders are suggested to preserve next the stock-centric tactic for better trading possibilities and maintain a near tab on global developments.

In F&O house, we noticed open interest reduction in Nifty as well as BankNifty. More robust hand proceeds with their relentless marketing in equities but preferred obtaining in index and stock futures phase. This has resulted in their index futures Extensive small Ratio surging to 24%. Apparently, the Nifty futures are now buying and selling at quality and the PCR-OI has also appear close to 1, which is a favourable improvement. For the coming monthly collection, 15500 put and 16000 connect with strikes are attracting traders’ awareness. Therefore, we consider 15400 – 15500 shall act as an immediate desire zone, whereas any sustainable move on the closing basis higher than 15700 shall open doorways for the psychological mark of 16000.

(Sameet Chavan is a Chief Analyst-Technological and Derivatives at Angel One. Views expressed are the author’s have. Be sure to talk to your economic advisor ahead of investing.)