Navigating Expiry: Nifty swings between red and green amid tussle at 22,200; use long straddle

NSE Nifty 50 fluctuated between gains and losses on May 16 -- weekly options expiry day, swinging both sides of the 22,200 resistance level. At 12.25 pm, the Nifty was up 60 points or 0.27 percent at 22,260. Earlier, the index climbed to an intraday high of 22,330, and fell to an intraday low of 22,106.

Expiry view

“Given the current market conditions, we expect the benchmark to fluctuate within the range of 22,100 to 22,300. A dip towards 22,100 represents a buying opportunity, whereas difficulties in surpassing the 22,300 mark suggest potential selling pressure at higher levels. We anticipate this 200-point range will dictate the market's direction during today's weekly Nifty expiry," said Riyank Arora, Technical Analyst at Mehta Equities.

Prabhudas Lilladher said: "Today's significant struggle for the Nifty at the 22,200 level is underscored by the option chain, which shows intense competition among option writers at this strike. With the Nifty currently around these levels, and the Put-Call Ratio of Open Interest (PCR OI) also at 0.9, we are positioned at a critical make-or-break point for the index. We expect a decisive movement to emerge."