Stock Market Highlights: Handy Shapes Doji Candle with Long Legs on Budget Day. What traders should do on Thursday’s expiration

After wild swings on Budget Day, headline index Nifty formed a long-legged Doji candlestick on the daily chart today, indicating an uncertain trend.

Now it should stay above 17777 zones, for an upward move to 17950 and then 18018 zones, while placing supports at 17500 and 17350 zones, said Motilal Oswal’s Chandan Taparia.

Prior to the weekly derivatives expiration on Thursday, the maximum OI build was seen at 17,000 put and 18,000 call option. The maximum OI accrual was 17,500 Put and 18,000 Call, followed by 18,200 Call Option.

The PCR ratio for the end of the week is 0.54 and for the end of the following week is 0.68. The overall write data suggests a negative bias as call writes are higher than put writes. An immediate or temporary recovery cannot be ruled out as the PCR ratio drops to nearly 0.50, analysts said.