F&O Manual | Global influences cause the Nifty 50 to breach 21,700; volatility is likely

 F&O Manual | Global influences cause the Nifty 50 to breach 21,700; volatility is likely

 F&O Manual | Global influences cause the Nifty 50 to breach 21,700; volatility is likely

Due to the December F&O series expiry, volatility is anticipated in the second half of trading; nonetheless, experts anticipate that the strong bullishness will persist in the next session. In a similar vein, he believes that Nifty 50 would soon hit 22,000 points.

The Nifty 50 reached new highs as it continued its upward momentum into a fourth session.

On December 28, bulls put a lot of pressure on the market, causing the Nifty 50 to reach a record high. For the first time, the headline index rose beyond 21,700 points. Investor confidence in the local markets was bolstered by encouraging signals from outside markets, a decline in the dollar index, a drop in the price of crude oil, and anticipations of a rate-cutting turn by the Federal Reserve.

Nifty was up 82.40 points, or 0.38 percent, at 21,737.20 at midday. A total of 1,541 shares increased, 1,633 shares decreased, and 105 shares stayed the same.

The change in put open interest (OI) is shown by green bars, while the change in call option OI is indicated by red bars.

The change in put open interest (OI) is shown by green bars, while the change in call option OI is indicated by red bars.

Bulls, who continued to be quite active at strike prices of 21,700 and 21,650, gave the market substantial support. This implies that there is little downside danger given present levels. Call writers increased their holdings above 21,750, then the 21,800 and 21,850 strikes, suggesting that there may be some resistance to the Nifty 50's rising trend.

The second half of trading should also be volatile since traders will probably move their holdings to the January F&O series before the December derivatives series expires because of market closure.

Analysts predict that the market will maintain its current high pace. Angel One's Sameet Chavan, a technical analyst, believes that prices might increase as high as 22,000 points in the foreseeable future, with immediate opposition around 21,800–21,850.

When things go wrong, bulls don't give up and purchase any little declines right away. In the long run, the bullish gap that was left between 21,500 and 214,80 on December 27 is probably going to serve as a solid support. Prior to that, Chavan said, the prior resistance at about 21,600 will serve as instant support.

Regarding particular equities, a decline in the dollar index resulted in significant gains for metal stocks such as Hindustan Copper, NMDC, SAIL, and National Aluminum Company. Delta Corp, Biocon, Laurus Labs, and Dr Lal Path Labs have all made short bets suggesting that there may be short-term losses.