F&O 18 August outlook: Nifty eyes 16,700, Bank Nifty 36,600 this expiry week; check support, resistance levels
NSE Nifty 50 index is eyeing 16,700 points target in the current week to 18 August options expiry. This week’s expiry day is on Wednesday, 18 August 2021, as markets will remain closed on Thursday on the occasion of Muharram. The options data suggested the highest call OI at 16,500 strike. Analysts expect Nifty to expire between 16300-16600 this week. While Bank Nifty is likely to trade in the 35800-36600 range. So far this week, Nifty has gained over 1 per cent to a fresh record high of 16,449.95. While the Bank Nifty index has added nearly one per cent to today’s high of 36,178.35. “Bank Nifty is consolidating near the 36,000-mark and both call and put at the 3,6000 strike have the highest OI but we may see a catch-up rally in Bank Nifty where 36500 is an immediate hurdle,” Santosh Meena, Equity Research Head, Swastika Investmart, told Financial Express Online.
Milan Vaishnav, CMT, MSTA, Consulting Technical Analyst and founder, Gemstone Equity Research & Advisory Services
Markets opened on a positive note and the Options data suggests that Nifty has opened up some more space on the upside. Today, the 16300 and 16400 calls saw large PUT writing happening with 16400 seeing addition of over 4 million Puts indicating that any consolidation will see this zone acting as strong potential supports. Call writing on the other hand is seen between 16500-16600 levels. This defines a range of 16300-16600 for the Nifty for the coming week.
Bank Nifty is also seeing large PUT writing at 36000; this makes this point a good potential support for Bank Nifty followed by 35800 level. On the other hand, addition of Call OI is seen at 36400 and 36600 levels. This shows that Bank Nifty may oscillate between 35800-36600 range with a positive bias.
Santosh Meena, Equity Research Head, Swastika Investmart
Setup for the new weekly option expiry is looking bullish as the highest OI of around 30 lakh is placed at the 16300 put option which will act as an immediate and strong support level while on the call options front 16500 has the highest OI of around 18.5 which is an immediate psychological hurdle. So for the time being, we have a well-defined range of 16300-16500 but the upside is open up to 16700 level. On the downside, if Nifty slips below the 16300 level then 16200-16150 is a critical support area. This expiry is a short expiry as we will have expiry on 18-August, Wednesday because of holiday on Thursday on the occasion of Muharram.
Bank Nifty is consolidating near the 36000 mark and both call and put at the 36000 level have the highest OI but we may see a catch-up rally in Bank Nifty where 36500 is an immediate hurdle; above this 37200-37700 will be the next resistance area. On the downside, 36000 will act as an immediate support level while 35500/35000 will be the next support levels.
Gaurav Udani, CEO & Founder, ThincRedBlu Securities
Nifty gave a strong opening today, it opened at 16,430, up by 65 points in the first 15 minutes of the day. If the Nifty 50 index manages to close above 16,450 on Friday, we may see 16550 and 16700 levels before the next weekly expiry. Nifty has strong support in 16330 and 16280 range. Bank Nifty on closing above 36200 may test 37000 in the current weekly expiry. It has strong support in the 35800 – 35700 range.
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