NIFTY Financial Service expiry today: 24,000 level sees significant open interest; check details

Equity markets opened higher on Tuesday. Markets were trading slightly higher after facing some selling pressure earlier during the session. The benchmark NIFTY50 and the SENSEX were trading 0.10% and 0.07% higher at 25,409 and 83,046, respectively, at 12:00 p.m. The Nifty Financial Services index, which expires on Tuesday, was trading 0.07% higher at 24,007 at noon.

The options market is currently factoring in resistance at the 24,000 level, with the open interest on the Call strike amounting to 2.33 crore. At the time of writing, the change in open interest for the strike stood at 1.98 crore.

On the downside, the market is considering the 23,950 level to act as immediate support. The open interest on this Put strike stood at 45.79 lakh, while the change in open interest stood at 39.65 lakh by 12:00 p.m.

The max pain of Nifty Financial Services stood at 24,000 at the time of writing. The max pain theory shows the level at which option sellers are likely to have the least loss on expiry. However, this level is dynamic and is prone to change toward the end of the session. On a 15-minute chart, the index was trading above its 21-exponential moving average (EMA) and the 50-EMA.

India VIX, an index that reflects the anticipated volatility in the market over the next 30 days, rose 3.56% on Tuesday to 17.14.

The Nifty Financial Services index reflected a put-call ratio (PCR) of 0.95 which indicates a neutral sentiment. PCR is the ratio of the number of puts to the number of calls of an asset. In extreme downward and upward market movements, the PCR may hit as low as 0.5 or as high as 1.8, respectively.