Nifty Midcap Select Expiry today: Options market expects index to close between 13,000 and 13,100

Equity markets opened higher on Monday and continued their strong momentum by noon. Dovish remarks by Federal Reserve Chairman Jerome Powell at the Jackson Hole Summit on Friday helped push the benchmark Nifty 50 above the 25,000 mark again on Monday. The Nifty 50 and the Sensex were trading 0.73% higher at 25,005.20 and 81,680.46 by 12:00 p.m.

The Nifty Midcap Select index, which has its expiry on Monday, traded 0.72% higher at 13,055.10 by noon. The options market is currently factoring in resistance at the 13,100 level with the open interest at this call strike at 1.52 crore at 12:00 p.m. The change in open interest for the strike stood at 1.25 crore at the time of writing.

Meanwhile, on the downside, the market is factoring in support at the 13,000 level with the Put options at this strike reflecting an open interest of 1.29 crore at the time of writing. The change in open interest stood at 1.17 crore.

The max pain of Nifty Midcap Select stood at 13,050 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.

The index reflects a put-call ratio (PCR) of 0.92 which indicates a neutral sentiment. PCR is the ratio of the number of puts to the number of calls of an asset. It is noteworthy that in extreme upward and downward market movements, the PCR can go as high as 1.8 or as low as 0.45, respectively.

On a 15-minute chart, the index was trading above its 21-exponential moving average (EMA) and 50-EMA.