Bank Nifty Ends High Ahead of Weekly Expiry: What To Expect Today?
Wednesday of every week marks a pivotal moment for Indian investors and traders – the Bank Nifty expiry. This day witnesses the settlement of all outstanding Bank Nifty options contracts, often resulting in heightened volatility and intense market activity.
In the last week, the Bank Nifty witnessed a volatile week, ending the previous Wednesday at 45,963.15.
What to Expect Today (March 6, 2024)?
Yesterday, on March 5, 2024, a day before the expiry, Bank Nifty closed at 47,581. The benchmark index ended higher for the fifth straight day on March 5, 2024, gaining 125 points to 47,581.
As per market experts, the Bank Nifty saw an equal addition of both puts and calls for this week’s expiry. This suggests that the range for this weekly expiry can be between 47,000 and 48,000.
On March 6, 2024, that is, on the day of expiry, the benchmark index opened at 47,451.65. Here’s a table for the options data on the expiry day.
Calls:
| OI | Bid Quantity | Bid | Ask | Ask Quantity |
| 1,14,920 | 27,049 | 31,52,345 | 15 | 378.85 |
| 1,82,044 | 87,137 | 41,91,620 | 285 | 301.25 |
| 1,84,284 | 1,11,555 | 40,26,948 | 270 | 232.4 |
| 2,72,808 | 93,747 | 75,53,200 | 60 | 169.7 |
| 1,74,350 | 1,09,948 | 44,54,437 | 15 | 121.15 |
In the case of Puts:
| Strike | Bid Quantity | Bid | Ask | Ask Quantity | Change | LTP | IV | Volume | Change In OI | OI |
| 47,700.00 | 105 | 76.45 | 76.6 | 180 | -124.7 | 76.6 | 21.07 | 30,97,641 | 1,93,014 | 2,60,051 |
| 47,800.00 | 30 | 99 | 99.2 | 120 | -153.6 | 99.05 | 20.26 | 32,72,029 | 3,04,186 | 3,33,982 |
| 47,900.00 | 330 | 130.75 | 131.05 | 15 | -183.2 | 131.2 | 19.56 | 22,97,632 | 2,06,637 | 2,21,725 |
| 48,000.00 | 30 | 168.65 | 168.95 | 165 | -215.9 | 169.05 | 18.69 | 24,19,710 | 2,76,157 | 2,97,637 |
| 48,100.00 | 105 | 220.3 | 220.9 | 105 | -239.25 | 220.9 | 17.97 | 8,15,599 | 81,189 | 85,646 |
Factors To Consider
Predicting the exact outcome of the Bank Nifty expiry is impossible, but considering the following factors can offer valuable insights:
- Market Sentiment: The overall market sentiment plays a crucial role. Global happenings, especially from other major banking indices, can influence the Bank Nifty.
- Open Interest Changes: Monitor the changes in open interest for call and put options throughout the day. A significant shift towards puts could indicate a potential downward move.
- Volatility: Keep an eye on the India VIX. A rising VIX suggests increased market uncertainty and potentially larger price swings.
- Technical Analysis: Utilise technical indicators like moving averages, RSI, and support/resistance levels to identify potential trading opportunities.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
Published on: Mar 6, 2024, 1:18 PM IST
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