Less investment more returns! Get daily profitable calls in Stock and Index Options. Package price only Rs 6000 per month (including tax). For more details, Call your RM or Call us on +91-7065111166.
Home » Nifty settles below 17400, unable to hold onto its gains. Infosys, Reliance among top underperformers. Now, what to expect on expiry day trade?
Morning Nifty Update

Nifty settles below 17400, unable to hold onto its gains. Infosys, Reliance among top underperformers. Now, what to expect on expiry day trade?

Expiry Day Trade Setup

 

Yesterday, we have seen positive momentum in the market for initial hours of trade but soon we have seen one sided selling in market, result of that Nifty closed with loss of 88 points while Sensex down 323 points. Surprisingly PayTM stock gained 17.24%, heavy volume witnessed in this counter. Now, Today we have weekly as well as monthly expiry day trade. We might see some very volatile move today in Index and as well as volume oriented stocks. Let’s see how market can react today: 

 

 

MARKET SUMMARY

 

Yesterday after a positive opening, the benchmark index was trading in the range, but in the second half of the session, the index wiped out all the day’s gains and shifted into negative territory. Finally, the index has settled at 17415.05 levels with 0.5% loss while Bank Nifty managed to hold the gains, closed at 37441.90 with 0.45% gains. Bank Nifty outperformed the Nifty index by 0.95%.


Why does Bank Nifty outperformed Nifty??


The banking sector was bullish yesterday as the government proposed to privatize two banks along with making banking amendments for the winter session to facilitate PSB privatization.

On the sectoral front,


Nifty Media up 1.54% & Nifty PSE up 0.48% were among the gainers in yesterday trading session. In Nifty Media ZEEL skyrockets 7% on merger plans with Sony Pictures Networks India entering final stages.

Nifty IT (down 1.83%) , Nifty Auto (down 1.56%) & Nifty FMCG (down 1.21%) were the Top draggers of the market.

FII were net sellers of the day, sold shares worth Rs 5123 crores. While DII bought shares worth Rs 3810 crores.

 

Major Gainer and Loser of Nifty 50

ZEEL (up 6.75%) and ONGC (up 4.26%) were among the Top gainers of yesterday.

Eicher motors, Maruti, Grasim & Infosys were among the Top losers in yesterday’s trading session as fallen around 2.69 % to 2.81%.

Now, what’s next??


The news of the COVID situation worsening globally has started weighing on the sentiments along with the inflation fear. And since there’s no major event on the domestic front, markets will continue to take cues from global counterparts.

At the same time, the scheduled monthly expiry would keep the traders busy today. We suggest continuing with negative bias on the index with a hedged approach.

 

 

 

Technical View of Index for expiry day trade

 

Nifty

 

Nifty 50 opened on a positive note and traded in a range on the first half but on the second half the index wiped out all the day gain’s and the bull’s stepped back.

The index ended below 17400 dragged by the IT and AUTO sectors.

Technically, on the daily chart, the index has failed to sustain at higher territory as it has tested the 60 EMA.

However, the previous day, the Index took good support at lower Bollinger Band formation and pulled up from 17200 levels, which acts as immediate support for the near term.

On the expiry day trade, In case buyers manage to lift the Index back above 17400 and hold it there, we saw additional gains. On the downside, support could be seen at 17300—17200. (Spot levels)

On the options front, the Nifty open interest put-call ratio is around 0.59 levels. Maximum call open interest addition was seen at 17500 strike. Whereas maximum put open interest is around 17300. This indicates a range of trading in upcoming sessions.


Nifty Futures strategy for the day
 
Nifty Expiry Day Trade Setup Chart
Technical Chart of Nifty

 

Strategy – Either buy above 17400 for the targets of 17470–17550 or Sell below 17300 levels for the downside target of 17220.

 

 
Bank Nifty

 

After a sharp recovery on Tuesday, the Bank Nifty lost ground once again due to tepid global market conditions and profit booking at higher levels in the second half.

The banking sector was on the radar today as the government proposed to privatize two banks along with making banking amendments for the winter session to facilitate PSB privatization.

Technically, on the hourly chart, the Index gives a breakout of falling parallel channel with a small margin but unable to sustain that level and came back in the channel which indicates a sideways to bearish move on the upcoming session.

Nevertheless, the bearish trend remains firmly in place, as mostly all the moving average maintains their bearish slope. Also, the Relative Strength Index (RSI) indicator has lost its bullish strength and stabilized below 45 on the hourly chart.

On the expiry day trade, in case buyers manage to lift the Index back above 37500 and hold it there, we will see some upside move in it. On the downside, support could be seen at 37200—37000. (Spot levels)

On the options front, the Bank Nifty open interest put-call ratio is around 0.8 levels. Maximum call open interest addition was seen in 38000 strike. Whereas the maximum put open interest is around 37000 strike. This indicates a range of trading in upcoming sessions.

 

Bank Nifty Futures strategy for the day
 
Bank Nifty Expiry Day Trade Setup Chart
Technical Chart of Bank Nifty


Strategy – Either buy above 37450 for the targets of 37800–38000 or Sell below 37200 levels for the downside targets of 37000–36800.

 

 

 
Top Stock Recommendations for today (25th November 2021)

 

SPICEJET (CASH)

 

SPICEJET

Technical Chart of SPICEJET
Technical Chart of SPICEJET

 

The stock has given a solid breakout with strong volume in the last trading session. We will expect a major turnaround in this stock from current levels.

Traders can enter on dips around 81-80 for the initial upside target of 88 and then to our next target of 92 in days to come. Support and stop loss will be below 74 on a closing basis.

 

 
 
IndusInd Bank (FUTURES)

 

IndusInd Bank

 

Technical Chart of Indusind Bank Futures
Technical Chart of Indusind Bank Futures

 

We have seen weakness on technical charts on 4 hours time frame & stock has also given a trend line breakdown, we may see further downside in this stock

Strategy – Traders can go for selling around 985 for the downside move till 960 & then 935 in days to come. Support and stop-loss above 1000 on a closing basis.

 

 

To get real time stock market news, updates and expiry day trade setups and strategies on your WhatsApp. Click on the image given below and fill your details.

 

WhatsApp Notification

 

We are a SEBI registered investment advisor. The above free information is for education/knowledge purposes. Read disclaimer on our website before investing.

 

Short Term Monthly Investment Picks for April 2021

Short Term Monthly Investment Pick

Stock Portfolio for Year 2021

Stock Portfolio for 2021

Get FREE Market Updates!

Stock Market WhatsApp Broadcast
Read in your native language.
Open chat
Get Market Updates on your WhatsApp