Nifty forms long-legged Doji candle on Budget day. What traders should do on Thursday expiry

Now, it needs to hold above 17,777 zones, for an up move towards 17,950 then 18,018 zones whereas supports are placed at 17,500 and 17,350 zones, said Chandan

of .

Ahead of the Thursday weekly derivative expiry, maximum open interest (OI) build up was seen at 17,000 Put and 18,000 Call Option. Maximum OI build up was at 17,500 Put and 18,000 Call, followed by 18,200 Call Option.

The PCR ratio for the near week expiry stands at 0.54 and for the next week expiry at 0.68. The overall writing data suggests negative bias as Call writing is higher than Put writing. The immediate or temporary bounce back cannot be ruled out as PCR ratio drops near to 0.50 levels, said analysts.

Option data suggests a broader trading range between 17,200 and 18,200 zones while an immediate trading range in between 17,350 and 17,900 zones due to higher volatility.

What should traders do? Here’s what analysts said:

Rohan Patil, Technical Analyst, SAMCO Securities
The moving average study on the weekly time frame indicates the Nifty is trading at make-or-break levels near its 50 EMA, which is placed at 17,400 levels. A closing below 17,400 – 17,300 may accelerate the bearish momentum towards 17,000 – 16,800, which were the prior support zones for the benchmark index. On the other hand, resistance is capped below the 18,100 level and if prices surpass that level, the 18,300 levels will be the next resistance.

Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities
Now 17,750 will act as a resistance and below the same the index may retest 17,400-17,350 levels. On the flip side, above 17,750, we can see a continuation of a pullback rally till 17,850-17,900. On dismissal of 17,350/58,700, it will slide further towards 17,250-17,200.

Nagaraj Shetti, Technical Research Analyst, Securities
The short-term trend of Nifty is highly volatile. Having moved up smartly from the lows in the last few occasions, there is a possibility of Nifty retesting the crucial resistance of 17,800 levels in the near term. Further sustainable upside could occur only above this hurdle.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)