Tuesday Weekly Expiry Outlook – Sector Index View (23rd December)

Weekly expiry sessions often bring heightened volatility, and today’s setup reflects a cautiously positive to range-bound environment for the sector index. Sector Index Overview The sector index is currently trading 32 points above the weekly VWAP of 26,140, which indicates a bullish undertone with limited upside for the expiry-day perspective. Holding above VWAP generally reflects strength and buyer dominance at lower levels. Trend Outlook The overall bias remains positive to sideways. The index continues to sustain above its short-term moving averages and has formed higher highs over the last three trading sessions, highlighting steady buying interest. Expiry Day Levels to Watch Resistance Zone 26,250 26,325 Support Zone 26,050 25,950 As long as the index holds above 26,100, it may gradually move higher towards the previous lifetime high zone. Expected Trading Range For today’s expiry, the index is expected to oscillate between 25,950 and 26,325 Derivatives Positioning Maximum Call Open Interest: 26,200 Maximum Put Open Interest: 26,100 Open Interest Build-up Call writing observed around 26,150 Put writing seen near 26,100 Derivative data suggests positive cues, as call unwinding is visible alongside fresh put writing, indicating confidence among market participants on the downside being protected. Expiry Day Trading Strategies Bull Call Spread Buy 26,150 Call Option Sell 26,250 Call Option This strategy benefits from limited upside movement while controlling risk. Option Writing Setup Sell 26,000 Put Option Sell 26,300 Call Option This range-bound strategy works best if the index stays within the expected expiry range. Conclusion The sector index maintains a constructive structure above key support levels. While strong trending moves may be limited, intraday opportunities can emerge within the defined range. Traders should stay disciplined with levels and manage risk effectively on expiry day. Disclaimer This analysis is strictly for educational and informational purposes only. We are not SEBI registered investment advisors. The views expressed are personal opinions based on technical and derivative data. Trading in the stock and derivatives market involves risk. Please consult a registered financial advisor before making any trading or investment decisions. The author shall not be responsible for any financial losses arising from the use of this information.