An expiry day has many pulls and pressures and most day traders simply take the day off. Today’s day will not be without it’s share of surprises with the 1.3 Cr of OI looming large at 5400.
The open has been kind to the buyers and a move above 5400 should setup a move for 5421 and 5435.
Watch 5385 on the downside.Refer to last night’s post.
1.2 Cr + at 5400 July still, that means that both PE and Ce writers are expecting a finish at 5400.
Market profile tells me that 5421 is on, and depending on whether buyers hold there, a further push to 5435/5445.
Guess 5420 is the decider level…we turn back both PE/ CE guys will be happy. If we move up then CE guys cry!
Reverse applies below 5385
Nifty moves in a range of 5382-5415 in the July future today, hugging quite close to the 5400 strike where at stake was an Open Interest of 1.2 Cr.
In the end the writers at 5400 who had written yesterday were forced to cover and a few more. Have a look at the chart :
11,37,500 shares got added in the 5400 CE yesterday and 22, 75,050 were reduced as of the close today.
Clearly the writers from yesterday lost out.
We auctioned in the 5400-5415 range for all of the afternoon not quite close to 5420 we wanted but quite away from the value low at 5385.
The market will be ready to give us a clear message from tomorrow again, with expiry pressures out of the way.