Bank Nifty surged nearly 1 percent on expiry day, trading at Rs 50,187, up 482 points at 11 am on June 12. The highest open interest (OI) in Bank Nifty put options has shifted up to a higher strike at 49,800, defining intra-day support, while base call writing has moved to 50,500, acting as immediate resistance for the day.
"Bank Nifty is looking bullish. The target for the index is around 50,500-50,700 on the higher side. The support for the index is around 49,700," said Arun Kumar Mantri, Founder of Mantri Finmart.
"HDFC Bank and ICICI Bank stocks look strong, which may take the index higher as they hold a major weight in the index. The banking index could test its all-time high in the coming week," added Mantri.
Should you take fresh intraday bets?
"Fresh bets can be taken on dips towards the 50,050 spot levels, keeping a stop loss below 49,800, but only for intraday. We have inflation data for India and the US today, so tomorrow we might see a gap up or gap down at the opening. Additionally, the US Fed outcome is due today, so traders could take long intraday positions in Bank Nifty," said Mantri.
Akshay Bhagwat, Vice President of Derivative Research at JM Financial, has a positive outlook on Bank Nifty with support at 49,800. Upside targets are aimed at 50,300/50,450. "The highest OI in puts has shifted to a higher strike at 49,800, defining intra-day support, with base call writing at 50,500 and speculative call buying at 50,200 for today's expiry," said Bhagwat.
Update on Bank Nifty expiry trades suggested on 11 June:
Akshay Bhagwat's Strategy Update:
50,000 CE: 1 lot bought at 140, now at 266 ( 120 points)
50,200 CE: 2 lots sold at 80, now at 130 (-50 points each)
Net: 20 points profit at CMP
Hold strategy for max profit if expiry plays out at the 50,250 zones as initially set
Arun Mantri's Strategy Update:
Book profit: Target achieved at Rs 39
Profit achieved around 190 points, approximately Rs 2,850 per lot
CMP: Rs 40
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