I expect the index to expire somewhere between 15000-15500 for the June 3rd expiry because of the following reasons:
- Firstly, because of the movement seen on Friday; if you would have closely noticed NIFTY was up 97 points but out of this 97 points 93 points were contributed by the short covering rally in Reliance alone. If it would not have been reliance NIFTY wouldn’t have closed @ an all time high
- Also, there is a good amount of call writing @ 15500 levels and put writing @ 15000 levels; and many smart people have made a short straddle @ 15300 level.
- One more key point to be noticed over here is that FII’s are 88% long; so the upside is kinda limited.