SENSEX 16 June Expiry: Index Approaching Support!

  • Stock Market Analysis
  • Editors Pick

The relaunched Sensex derivatives are gaining a lot of traction among market participants. On the 9 June 2023 expiry day, these derivatives clocked a record volume of 27.5 lakh contracts which was significantly more than the previous expiry volume of 11.08 lakh contracts. Keeping an increasing interest of derivatives traders in mind, here's my first view on Sensex.

Sensex had been rallying along with the Nifty 50 index since the beginning of April 2023 and on Wednesday surged to the 2023 high of 63,321.4. While 7th June 2023 witnessed a fresh up move from a brief consolidation phase, the lack of follow-up buying interest triggered profit booking sessions on the next two days.

Image Description: Daily chart of Sensex (spot)

Image Source: Investing.com

However, the overall trend is still positive as the index is respecting the higher high and higher low formation (HH & HL) on the daily time frame. This chart structure has remained intact since the beginning of the rally, hence there is no reason to call for a bearish view until this formation breaks.

As the correction is going on, the nearest support to which the index can fall is around 62,360. This is the immediately preceding down fractal hence, can be used to objectively mark the HH & HL formation. Once the index breaks this low, traders can think of forming a bearish view. Analyzing the options chain data is almost irrelevant at this point as there is not much of an open interest build-up there yet.

Upon a breach below 62,360 (spot) the next immediate support is present at 61,500. This means traders can play for a meaningful fall below this break, but until Sensex is hovering above it, the trend structure remains bullish. Hence, this key support is the level traders need to watch out for this weekly expiry and it can also be used as a stop loss for long positions.

As this is a relaunched contract, here’s a brief on the revised contract specifications:

Lot size - 10

Tick size - 0.05

Settlement type - Cash

Futures margin - INR 71,000 (approx)

Read More: ‘Market Coupling’ Torpedoes F&O Stock to 15% LC!

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  • Kitten friend @Kitten friend
    hi sir please let me know the symbol of sensex and bankex to trade in MOTILAL OSWAL
    Like 0
  • Vijaysing Kakarwal @Vijaysing Kakarwal
    nice information
    Like 1

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