Nifty Midcap index soars to record high on expiry day

Broader market index Nifty Midcap 100 scaled a record high in a special, full trading session on Saturday, January 20, rising as much as 471.3 points —or one per cent —to an unprecedented 48,287.2, and surpassing an existing peak of 48,053.5 registered on Tuesday. The index was scheduled to expire at the end of the session.  

For the equity derivatives segment, the Midcap Nifty (MIDCPNIFTY) contracts expiring on January 22, 2024, will now expire on  January 20, 2024, according to a circular by stock exchange NSE. 
 
The barometer was originally scheduled to expire on Monday. However, bourses BSE and NSE will remain shut that day for the consecration ceremony at the Ram Mandir in Ayodhya, Uttar Pradesh.  
 
The expiry of any derivatives—or futures and options (F&O)—contract is moved to the previous trading day in case the market assumes a holiday on the original date.  At 10:35 am, the midcap index was holding on firmly to the green with a gain of 0.7 per cent at 48,157.4. 

Earlier in the day, Zee Business Managing Editor Anil Singhvi predicted substantial gains in the index during Saturday’s session. 

Meanwhile, headline indices Sensex and Nifty50 continued to rise for a second straight session on Saturday amid strong global cues, including a rally on Wall Street. Both gauges rose as much as half a per cent in intraday trade, with the 30-scrip index rising as much as 343 points to 72,026. and the Nifty50 moving to as high as 21,720.3, adding 97.9 points to its previous close.  
 
Technical outlook  

Many analysts expect a further upside in the midcap index in the coming days.

According to Avdhut Bagkar, Derivatives and Technical Analyst at StoxBox, the latets upmove implies a breakout structure in the index with the next level to strike appearing at 48,600. 

The underlying bias has regained the optimistic bias, as the price action has triggered the next leg of upside, he said, adding that besides 46,000, 47,300 has emerged as crucial support for the medium-term bullishness.

“Stability over the 48,000 mark will see greater strength in the price action, with every dip perceiving accumulation. The trend remains highly robust until key supports are defended.  Only a decisive break down below 46,000 could negate the positive sentiment,” Bagkar added. 

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