Nifty February futures ahead of its expiry day closed at a premium on Wednesday compared to the benchmark Nifty 50. Markets traced their fourth consecutive day drop, dictated by weak global cues as the focus shifted towards RBI and Fed monetary policy minutes. A sharp selloff in Adani stocks, heavyweight Reliance Industries, HDFC Bank, and other large-caps dragged the performance. Both Sensex and Nifty 50 touched the lowest reading in five months.
Nifty February Futures which are set to expire on February 23, closed at ₹17,566 — down from the previous day’s reading of 17,840.10. However, this index futures still stood at a premium of ₹11.7 compared to the closing of Nifty 50.
Nifty 50 dipped by 272.40 points or 1.53% to end at 17,554.30.
The volatility index on NSE nosedived by 11.7% on Wednesday.
The Nifty February futures posted a volume of 1,51,411 on the exchange.
₹ ₹190.08 lakh crore. Among the top traded individual stock futures were Adani Enterprises, ICICI Bank, and Reliance Industries (RIL) on Wednesday.
On Tuesday, the turnover of the F&O segment was around ₹236.45 lakh crore.
On the performance, Rohan Shah-head technical analyst at Stoxbox said, “In the intraday sessions, Nifty managed to trade below the 17,800 mark after a gap-down entry in morning trade & remain down throughout the day & made a day low of 17529.
What to expect on F&O expiry on Thursday?
Talking about the Nifty 50 on the expiry day, Shah added, “Nifty is taking support at the daily trend line. Intraday traders can look for long opportunities only above the 17,660 level on Thursday Expiry & the price should sustain above 17,700 for 15 minutes to confirm long. Traders can look for short only if nifty breaks the 17,500 level & remains below for 15 min to confirm short.”
While Vikas Jain, Senior Research Analyst at Reliance Securities said, if NIFTY50 hold the first-half lows in the morning then can witness some short covering in the last one hour of trade. He said, “NIFTY50 has broken on the lower side from its 20-day SMA and we expect volatility to increase as VIX has gained by 14% over the past few days. Now the support of 17,750 will act as strong resistance from current levels and the 200-day SMA near 17,375 will act as strong support. Expect volatility to increase in the last one hour of trade with respect to monthly expiry on Thursday.”
In regards to February month expiry on Thursday, Vaishali Parekh, Vice President – Technical Research, Prabhudas Lilladher said, “Nifty monthly expiry option chain reflects PE writers position at 17500 of over 1.86 lakh OI contracts followed by 17000PE/17400PE each with over 1.35 lakh and 1.30 lakh OI contracts. CE writers’ position stands still with over 3.13 lakh OI contracts at 18000CE and at various strikes – 17700CE/17800CE and 17900CE with over 2 lakh OI contracts respectively. PCR_OI at 17500 is 4 which evidently is a near-term support.”
Parekh added, Banknifty’s monthly expiry option chain witnesses PE writers position of over 1.42 lakh OI contracts at 40000PE and of over 1.35 lakh OI contracts at 39000PE strike respectively. CE writers adding up their positions at 41500CE/41000CE strikes each with over 2 lakh OI contracts and at 40500CE with over 1.93 lakh OI contracts respectively.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
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