How is Bank Nifty likely to expire this week?

As the weekly series of December 23 is coming to an end, it will be important to analyse how the index is likely to close on Thursday. A thorough analysis of the technical chart and open interest is important to get an idea about the index’s behaviour.  

This week, Bank Nifty made a swing low of 34,018 and has registered a fall of about 2,530 points or 6.9 per cent, since the last weekly expiry. However, Bank Nifty has recovered about 1,200 points since then. Thus, Bank Nifty has been highly volatile this week.  

For this weekly expiry, the total call contracts written are 16,87,611 while the total put contracts written are 15,21,172. The PCR stands at 0.9 and indicates the bearish nature of the index. On the put side, 35,000 happens to have a maximum open interest of 1,62,589. The highest open interest on the call side is seen at 35,500-strike, which has 1,59,674 open contracts. It has been observed that the market participants are creating a short straddle of Rs 200 at 35,200, which indicates a short range of 35,000 and 35,400. Also, Bank Nifty is expected to expire in a broader range of 35,000 and 35,500. Max Pain at 35,200 suggests that Bank Nifty might close somewhere near 35,200.