A Gap-Up into expiry day: 24,000 is the floor, and the jobs report waits for tonight

A very good morning, guys. Yesterday the market did the one thing everybody had stopped expecting. It climbed back above 24,000 and closed there, at 24,006. The level that broke last week is back under our feet and this morning we are set to open a clear 150 points higher, on Sensex expiry. But don't get comfortable yet, because today two big events land on the very same day. One during our session, one after our close. And when two catalysts stack on top of each other, the market stops trusting the calm.

This is The Tanmay Edge. You are listening to Tanmay Kurtkoti, Season 2, Episode 72. Let's go. Starting with outside India. Overnight the US gave us nothing. 7 percent a second soft session for tech. The S&P eased a touch, and only Dow futures held barely green. So the tech tailwind has gone quiet two days running, and that matters, because our own IT pack is still the weakest link in the market. Asia this morning is split Hong Kong firm, but Japan, Taiwan and Korea are all heavy, with Korea off nearly 3 percent.

Crude keeps drifting lower. Brent is near 71 dollars, the US crude close to 68, as the US and Iran keep talking. Cheap oil stays a quiet tailwind for us. Gold eased overnight, back to about 4,050. But here's the number I want you watching: the rupee. Yesterday it weakened it slid to about 95 and a quarter against the dollar, its softest close in a while, and it's now sitting right on top of that 95 line. A weak rupee is one of the things that keeps foreign money nervous, and a push toward 95 and a half, right into tonight's jobs number, is exactly what nobody wants to see.

And now the number that sets up your whole morning: GIFT Nifty is up 140 points, trading around 24,183. Strip out the premium and that points to the Nifty opening near 24,150, a gap-up of roughly 140 points. So today we don't just hold above 24,000 we open a clear 140 points above it, right underneath the 24,200 resistance. And notice what that means: the US gave us nothing overnight, yet we are gapping up anyway. This move is our own market's doing, not an import.

The question today isn't whether we get back to 24,000. It's whether we can hold this gap-up and take on the 24,200 level, with the jobs number waiting for tonight. So what are these two events? The first: today is Thursday, Sensex weekly expiry. The weekly bets on the Sensex settle this afternoon, and that pulls the index toward the level where most of the money is parked. The second is bigger, and it lands after we've gotten home. Tonight the United States releases its monthly jobs report and this month it lands a day early, on a Thursday, because Friday is a US holiday.

That number decides what the US central bank does next with interest rates, and it moves everything: the dollar, our rupee, foreign flows into India. It drops after our market closes, which means today our session doesn't get to see it. It can only brace for it. That's the setup: an expiry that pulls us sideways during the day, and a coin-flip event hanging over tonight. Two hands on the wheel. Now the part that matters most: who actually moved the money. In the order that counts the pros came into July leaning up, and yesterday they pressed the bet harder.

They are net long the market through futures, and they piled on a big stack of fresh upside bets on top of it. And this is the tell: they kept their downside protection on at the same time. Long the market, and insured via options. That's a desk that wants higher but refuses to be caught naked into a jobs number. 6 lakh contracts, and they stayed net sellers of stock in the cash market. Leaning down, still defensive. And the everyday crowd: long the market, and they've sold a huge pile of protection nearly 7 lakh contracts to earn a little income.

That works beautifully on a calm day; it's the exposed side if tonight's number goes the wrong way. So the read is simple, guys: the pros are long but hedged, the foreigners are short, and the crowd is long and unprotected. The smart money is paying for the insurance. The crowd is selling it. Hold that thought. So where does that leave the levels? Starting with Nifty. 24,000 has flipped its job. Last week it was the resistance overhead; now it's the floor beneath us, so it acts as support and after today's gap-up, it's a support we're opening a full 150 points above.

So the line that matters on the upside is 24,200, the next big cluster of selling bets in the OI. A clean push through 24,200 really needs a friendly jobs number, so that's more a Friday story than a today story. On the downside, this is exactly where buy-on-dips would work: a pullback toward 24,050 to 24,100 is a level to lean on, not to fear, as long as 24,000 holds on a closing basis that's your stop-loss level. Only a close back below 24,000 puts 23,800 back in the picture.

Until then we are clear till 24,200. Now the Sensex, because today is weekly expiry, and the gap changes the whole story. Sensex closed at 76,922, just under that 77,000 mark, but this morning it's set to open above 77,000 and 77,000 is the big line. So open and hold above 77,000, and it turns from ceiling to support: the settlement gets pulled up toward that 77,200 to 77,500 zone, with 77,500 the next resistance overhead. Slip back below 77,000 and 76,700 to 76,500 is the support that comes into play.

So the entire Sensex expiry today hinges on one question: does it hold above 77,000? If yes, we're having an expiry between 77,300 and 77,500. And remember the fear gauge the market's price of insurance it is still extremely low, that's VIX around 13. Remember that; it matters for today's plan, and I'll tell you why right now. So my plan for today is simple, guys. We are gapping up above 24,000, and 77,000 on Sensex, so my base case is constructive 77,000 is now firmly the support on Sensex, and 24,000 on Nifty.

But here's the discipline: I am a buyer of dips, not a chaser of the gap. I don't buy the first green candle 150 points higher. I let the open settle, and I look to add on pullbacks that 24,050 to 24,100 level, and that's where the reward-to-risk lives. On Sensex I'd buy around that 77,100 to 77,300 mark, with 24,000 as my line in the sand and 77,000 for Sensex. 24,200 is the cap for the day. And on Sensex, hold above 77,000 and the expiry drifts toward that 77,300 to 500 mark; lose it and we'd see 76,700 is the net.

I am trading lighter than usual here's why. The real move isn't today. It's tonight, when that jobs number hits, and it plays out tomorrow morning. Today's session is the market holding its breath. So I'm not chasing a breakout above 24,200 that decision belongs to tomorrow. And I am keeping my protection on, not selling it, because the insurance is priced for exactly this kind of event. My systematic read agrees with the split the tape keeps showing: constructive on the broader market the smaller names, auto, consumer goods, financials all strong and still cautious on IT, which is nursing a fourth day of losses and needs the bleeding to stop.

If IT steadies today, we press 24,200. If it makes a fresh low, 24,000 is our support. One line to close this setup: a gap-up into a Sensex expiry, a jobs number waiting for tonight, and a rupee sitting weak on 95. So it's a day to buy on dips, respect the range, keep your protection on, and let tonight's number not today's tape dictate the big call. That's your edge for today, guys. If this added value, share it with the one trader friend who needs it right now.

com. I'm building RupeeCase India's first systematic investing terminal, which outperformed once again yesterday as well. So you just got earlier, guys. See you all once again tomorrow. Have a very happy expiry.