F&O expiry: Nifty ends at record closing high; analysts see Nifty at 15,700 in June series

On the day of expiry of May derivatives contracts, BSE Sensex and Nifty 50 settled in the positive territory. BSE Sensex gained 98 points to end at 51,115, while the broader Nifty 50 index added 36 points to settle at 15,338. The broader markets also performed in line with equity benchmarks. S&P BSE MidCap index jumped 116 points or 0.54 per cent to finish at 21,687, while S&P BSE SmallCap index gained 79 points or 0.34 per cent to settle at 23,591.49. Market breadth was positive as 1,751 stocks advanced while 1,381 scrips declined. While 141 shares remained unchanged.

Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments

The Index has maintained above the 15,300 level today. This should allow the index to move higher to levels closer to 15,600. Any intra day correction or dip can be utilized to accumulate long positions on the Nifty. We have a good support at the 15,000 level and as long as we do not break this on a closing basis we are in bull territory!

Jay Thakkar – VP and Head of Equity Research at Marwadi Shares and Finance

Nifty closed well in the positive territory on the expiry day at record high levels. It was well supported by the Banknifty which managed to close above 35,000. The come back in the Nifty Pvt sector helped both the Nifty and Banknifty to move higher and close well in the positive territory. From hereon the Nifty has shifted its base to 15,150 levels for the June series and till those levels are held we can see 15,500 in the near term and 15,750 in the June series. The Banknifty can surprise everyone positively as it’s quite oversold and we can see good short covering there which can take it to 35,700/36,000 on immediate basis whereas to all-time Highs positionally. The immediate support is at 34,500 whereas June series support is 33,900 levels. The broader market participation continues to be impressive and the cash segment stocks are seeing good value buying action.

Vinod Nair, Head of Research at Geojit Financial Services

Market gained its momentum in the opening hours on hopes of a state-wise unlocking due to declining covid cases. However, RBI’s warning of the risk of a bubble in the equity market in its annual report made the market cautious, forcing it to end flat on the day of the monthly F&O expiry. RBI has noted a disconnect between the market and economy due to Covid. The equity market is valued based on its future earnings growth proposition, which is solid for India today. High liquidity does help the market and RBI has reaffirmed its supportive stance till the economy recovers.

Rohit Singre, Senior Technical Analyst at LKP Securities

One more positive session witnessed & index given close at 15,338 with minimal gains of 36 points and formed a doji sort of candle pattern on daily chart. on the immediate basis index has formed support near 14,275 zone any break below said levels we may see more profit booking in index towards 15,200 zone which is another support on the downside, stiff hurdle still at 15,430-15,470 zone.

Sumeet Bagadia, Executive Director, Choice Broking

On the technical front, the Nifty 50 continue to trade in higher high and higher low formation which suggests further upside movement in the counter. Moreover, the index has given closing above 21*50 Hourly Moving Average with a positive crossover which points out strength in the counter. In addition, an indicator MACD & Stochastic witnessed positive crossover, which suggests a bull-run for upcoming sessions. At present, the nifty seems to have resistance at 15,450 levels while immediate support is placed at around 15,140 levels.

Ajit Mishra, VP – Research, Religare Broking Ltd

Markets traded volatile and settled marginally in the green on the day of monthly expiry of May month contracts. The benchmark indices witnessed a firm start but profit taking at higher levels capped the upside as the day progressed. Meanwhile, volatile swings witnessed across the board wherein banking showed tremendous resilience while oil & gas and realty traded subdued and ended lower. Markets are now eyeing announcements on unlocking by the states which are fueling the recovery. Besides, stability in the global markets after the Fed assurance is also helping the index to sustain at higher levels. We’re currently seeing most sectors, barring metal, participating in the move and expect this trend to continue. Participants should continue with the “buy on dips” with focus on sector and stock selection.