Bank Nifty Holds Strong Ahead of Monthly Expiry

Indian equity markets witnessed a positive trading session on Wednesday, with major indices opening higher and sustaining gains throughout the day. The upbeat mood in the broader market reflected strong investor sentiment, supported by optimism around a possible trade deal between India and the United States. 

Cautious anticipation also surrounded the upcoming U.S. Federal Reserve policy announcement, keeping traders alert.

Market Overview

The Bank Nifty index opened at 58,316.25, up by 102.15 points from the previous day’s close of 58,214.10, maintaining a steady upward trajectory through most of the session. Although the index slipped briefly to 58,087, it regained momentum in the second half of the day and touched a high of 58,469.90 before settling at 58,385.25, up 171.15 points or 0.29%.

Technical indicators continued to point towards firm buying interest. The Relative Strength Index (RSI) stood at 74.19, suggesting the market is in an overbought zone but still showing scope for limited upside movement. Moreover, the index remained comfortably above all key Exponential Moving Averages (EMAs) of 20, 50, 100, and 200, both in intraday and daily time frames.

Understanding Bank Nifty Monthly Expiry

The monthly expiry of Bank Nifty options and futures contracts occurs on the last Thursday of every month. If the last Thursday happens to be a trading holiday, the expiry is advanced to the previous trading session.

These expiry sessions are particularly important for traders who manage rollover positions or short-term derivative strategies. The movement around expiry often reflects traders’ outlook on market direction and volatility.

Futures Trading Cycle

Bank Nifty futures contracts operate on a three-month trading cycle — near month (current), next month, and far month. A new contract is introduced on the trading day immediately following the expiry of the near-month contract.

Session Highlights

On Wednesday the Bank Nifty began the day on a firm note at 58,316.25, up 102.15 points from the previous close of 58,214.10. Early strength was briefly capped as the index touched an intraday low of 58,087 before regaining momentum. 

It traded within the 58,050–58,400 range for most of the morning, staying above all four key EMAs (20, 50, 100, and 200) on the 15-minute chart. In the latter half, the index climbed to 58,470, marking the day’s high before closing at 58,385.25.

Read More:Nifty Bank Index Climbed 0.76% to 58,140, Boosted by HDFC Bank, ICICI Bank, and SBI

Conclusion

With the Bank Nifty trading comfortably above key support zones, the focus remains on the monthly expiry session. Market participants will be watching closely for potential directional cues as the index navigates between strong support and resistance levels. 

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