Nifty, BankNifty Outlook or analysis based on option chain (Jan 13 25)
Funds Flow (Rs crore) Last Closing
DII: 3,961.92
FII/FPI: -2,254.68
Put-Call Ratio
The Nifty Put-Call ratio (PCR), which indicates the mood of the market, declined to 0.88 on January 10, from 0.92 level in the previous session.
The increasing PCR, or being higher than 0.7 or surpassing 1, means traders are selling more Put options than Call options, which generally indicates the firming up of a bullish sentiment in the market. If the ratio falls below 0.7 or moves towards 0.5, then it indicates selling in Calls is higher than selling in Puts, reflecting a bearish mood in the market.
India VIX
The India VIX, the fear index that measures expected volatility in the market, sustained above the 14 mark, rising 1.76 percent last Friday to finish at 14.92, which is unfavourable for bulls.
Nifty Call Options Data
According to the weekly options data, the maximum Call open interest was seen at the 24,500 strike (with 91.24 lakh contracts). This level can act as a key resistance for the Nifty in the short term. It was followed by the 24,000 strike (83.4 lakh contracts) and the 23,800 strike (64.96 lakh contracts).
Maximum Call writing was observed at the 24,000 strike, which saw an addition of 40.12 lakh contracts, followed by the 23,800 and 23,500 strikes, which added 30.61 lakh and 26.3 lakh contracts, respectively. There was hardly any Call unwinding seen in the 22,400-24,600 strike band.
Nifty Put Options Data
On the Put side, the 22,500 strike holds the maximum Put open interest (with 61.85 lakh contracts), which can act as a key support level for the Nifty. It was followed by the 23,000 strike (45.79 lakh contracts) and the 23,500 strike (38.01 lakh contracts).
The maximum Put writing was placed at the 22,400, which saw an addition of 21.44 lakh contracts, followed by the 23,400 and 23,000 strikes, which added 15.53 lakh and 14.28 lakh contracts, respectively. The maximum Put unwinding was seen at the 23,700 strike, which shed 4.93 lakh contracts, followed by the 24,000 and 23,600 strikes, which shed 1.28 lakh and 1.05 lakh contracts, respectively.
Key Levels For The Nifty 50
Resistance: 23,554, 23,613, and 23,710
Support: 23,361, 23,302, and 23,205
Bank Nifty Call Options Data
According to the monthly options data, the maximum Call open interest was seen at the 51,000 strike, with 20.21 lakh contracts. This can act as a key resistance level for the index in the short term. It was followed by the 50,000 strike (17.5 lakh contracts) and the 50,500 strike (10.01 lakh contracts).
Maximum Call writing was visible at the 49,000 strike (with the addition of 6.65 lakh contracts), followed by the 50,000 strike (6.64 lakh contracts) and the 49,500 strike (3.78 lakh contracts). The maximum Call unwinding was seen at the 50,900 strike, which shed 3,375 contracts, followed by the 50,800 strike, which shed 420 contracts.
Bank Nifty Put Options Data
On the Put side, the 46,000 strike holds maximum Put open interest (with 15.03 lakh contracts), which can act as a key support level for the index. This was followed by the 49,000 strike (13 lakh contracts) and the 47,000 strike (11.9 lakh contracts).
The maximum Put writing was observed at the 45,500 strike (which added 1.89 lakh contracts), followed by the 46,500 strike (1.79 lakh contracts) and the 46,000 strike (1.39 lakh contracts). The maximum Put unwinding was seen at the 50,000 strike, which shed 88,935 contracts, followed by the 49,500 and 49,400 strikes which shed 86,085 and 72,630 contracts, respectively.
Key Levels For The Bank Nifty
Resistance: 49,275, 49,476, and 49,801
Support: 48,624, 48,423, and 48,098
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