Trade Plan-Stay cautious; Nifty50 heading towards inflection point at 9,500

The Wednesday-The entire session was governed by the weekly options setup, where the highest Put OI got shifted from 9,400 to 9,500 levels. Thursday's session will see the expiry of the weekly options as well as the current series derivative contracts.

The India Volatility Index, India VIX, declined further by 4.29% to 33.8375.

Rollovers are expected to dominate the session. The price action of Nifty against the 9,500 level will be extremely crucial. Strike price 9,500 has the highest Put OI along with second-highest Call OI concentration, and this level is set to act as an inflection point for the session on Thursday.

Nifty is likely to see the 9,590 and 9,635 levels act as immediate resistance points on Thursday, while supports will come in at 9,410 and 9,365 levels.

Even if the market shows incremental upsides, it will get all the more vulnerable to bouts of profit-taking at higher levels. Chasing of up-moves is making the risk-reward ratio absolutely unfavorable from current levels. In the event of any incremental up-moves, stay away from chasing them, and approach the market with higher caution.

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