F&O Manual: Weekly expiry day witnessed volatility in the market with the RBI policy decisions being announced. The market started with a bullish trend, but heavy profits were seen in all sectors later in the day, resulting in a complete wipeout of the day’s gains. The day ended with the Nifty 50 index closing in the red. The index closed at 18,634.55, down 91.85 points or 0.49% from the previous day’s close.
Battle for 18,700 level dominance: For the June 15 expiry, the fight to dominate around the 18,700 levels is ongoing. There has been heavy call writing along with put writing at this level, indicating a large straddle trade. However, there is also resistance present at the 18,750 and 18,800 strikes.
Focus on trade management: According to Ajit Mishra of Religare Broking, the market is gradually reaching higher levels, but the weakness in the banking pack, along with mixed global cues, is slowing the market’s pace. In this scenario, focus on trade management is crucial while buying in the market.
Bank Nifty support at 43,700: After the RBI policy, the Bank Nifty index saw continuous selling pressure around the 44,500 levels. Currently, the support level for the Bank Nifty index is at 43,700. This level is crucial as a breakdown below it could result in a sharp bearish move in the market. According to Rupak De of LKP Securities, the Bank Nifty is stuck in a range, and a breakout above or below this range could provide clarity on the index’s direction.
Heavy long build-up in Astral: Astral saw a significant increase in open interest by 17% on June 8, along with a long build-up, which indicates a bullish trend. This occurs when there is an increase in open interest and stock price simultaneously. Dixon Technologies, NTPC, and JSW Steel also saw long build-ups.
Short build-up in Tata Communications: Tata Communications saw a short build-up with a 28% increase in open interest, indicating a bearish trend. This occurs when there is an increase in open interest and a decrease in stock price simultaneously.
Disclaimer: The views expressed by experts on Moneycontrol are their own and not that of the website or its management. Users are advised to consult certified experts before making any investment decisions.
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