Nb. Our comment from the 12/16/21 (Not published)
Nb. Our comment on 12/20/21
In our last comment on the December expiry, we said “then holding this market between 7250 and 7350 should be the order of the week” and as the EDSP was 7264.53 we can only surmise that they did a good job.
However, quite often the settlement of one expiry can lead to problems for the next one, especially if the zones are not aligned.
And although this is the case here, the discrepancy isn’t so great and anyway there is a hundred points of the very minimal Y1 ratio above the January zone.
This should make for a very decent start to this expiry, as this 100-points of Y1 ratio together with a 100-points of the zone means that there is plenty of space for this index to play around in.
The one word of caution is that in just a few days, which you can see by comparing the two tables above, there has been a huge loss of Y ratio already. Although this may not continue, it is perhaps wise to be aware of the trend.
Also, January is a 5-week expiry and this, the first “extra” week can therefore sometimes be very quiet, although with everything that’s going on at the moment, we can’t see it getting away with this in the current climate.
Otherwise, looking at the above table, it is obvious there is far more ratio above the zone than below it, although this bias has been undone by the recent activity to a large extent, it is still significant and may yet come into effect as this expiry progresses.
In the meantime, obviously 7250 is the first critical level to watch out for, thereafter the next ones are in the table above for you.
Range: 7250 to 7350
Type: On balance bearish