Wed Jan 14 04:30:00 UTC 2026: ### Markets Wobble on Expiry Day; Analysts Advise Levels-Based Trading
The Story:
On expiry day, Indian benchmark indices, Nifty and Sensex, experienced volatility, ultimately closing lower. Despite the decline, buying interest was observed near lower levels, suggesting continued bullish sentiment among investors. Market analysts are recommending a levels-based trading strategy for day traders, citing the market’s current non-directional texture.
Key Points:
- Nifty and Sensex closed lower due to expiry day volatility.
- Analysts recommend a levels-based trading strategy for day traders.
- Buying interest emerged near lower levels, indicating sustained bullish participation.
- Foreign Portfolio Investors (FPIs) net sold shares worth Rs 1,500 crore on Tuesday.
- Domestic Institutional Investors (DIIs) were net buyers at Rs 1,182 crore.
Critical Analysis:
The market’s non-directional texture suggests a period of consolidation or uncertainty. The FPI selling, while significant, was partially offset by DII buying, indicating a tug-of-war between different investor classes. The “levels-based trading strategy” is likely aimed at capitalizing on short-term price fluctuations within a defined range, acknowledging the lack of a clear upward or downward trend.
Key Takeaways:
- Expiry days can induce significant market volatility.
- Market sentiment remains cautiously bullish, despite short-term declines.
- FPI and DII activity can influence market direction, but their impact can be contradictory.
- Day traders are advised to adopt strategies that account for market uncertainty.
- A levels-based trading strategy is appropriate for the current market conditions, focusing on support and resistance levels.
First Piper 