Nifty shows weakness ahead of expiry; should you buy on dips or wait for more correction?
Ahead of the October series expiry, Nifty 50 opened below 11,650 points following weaker global cues, but soon recouped some losses to trade near 11,700-mark. Put option data shows that maximum open interest (OI) is placed at 11,500 strike with 54 lakh contracts while call OI is the most at 12,000 strike with over 65 lakh contracts. “Ahead of the expiry option statistics are suggesting us that shorting is advisable if Nifty breaks the level of 11,680. For that we need to keep stop loss at 11770,” Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities told Financial Express Online.