Nifty, BankNifty Outlook or analysis based on option chain (Jan 15 25)
Funds Flow (Rs crore) Last Closing
DII 7,901.06
FII/FPI -8,132.26
Put-Call Ratio
The Nifty Put-Call ratio (PCR), which indicates the mood of the market, jumped to 0.86 on January 14, from 0.72 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 volatility index that measures expected market volatility, reversed some gains on Tuesday, falling 3.3 percent to the 15.47 level. However, it is still in the higher zone, which is not supportive for the bulls.
Nifty Call Options Data
According to the weekly options data, the maximum Call open interest was seen at the 24,000 strike (with 1.08 crore contracts). This level can act as a key resistance for the Nifty in the short term. It was followed by the 23,500 strike (1.05 crore contracts) and the 23,400 strike (79.47 lakh contracts).
Maximum Call writing was observed at the 23,200 strike, which saw an addition of 20.7 lakh contracts, followed by the 23,400 and 23,750 strikes, which added 13.3 lakh and 10.58 lakh contracts, respectively. The maximum Call unwinding was seen at the 23,100 strike, which shed 10.08 lakh contracts, followed by the 23,000 and 23,300 strikes, which shed 5.18 lakh and 2 lakh contracts, respectively.
Nifty Put Options Data
On the Put side, the 23,000 strike holds the maximum Put open interest (with 1.06 crore contracts), which can act as a key support level for the Nifty. It was followed by the 22,500 strike (1.05 crore contracts) and the 23,200 strike (92.54 lakh contracts).
The maximum Put writing was placed at the 23,200, which saw an addition of 55.11 lakh contracts, followed by the 22,500 and 22,400 strikes, which added 48.78 lakh and 47.11 lakh contracts, respectively. The maximum Put unwinding was seen at the 22,900 strike, which shed 3.94 lakh contracts, followed by the 23,700 and 23,500 strikes, which shed 2.32 lakh and 1.79 lakh contracts, respectively.
Key Levels For The Nifty 50
Resistance: 23,242, 23,273, and 23,322
Support: 23,142, 23,111, and 23,061
Bank Nifty Call Options Data
According to the monthly options data, the maximum Call open interest was seen at the 50,000 strike, with 17.68 lakh contracts. This can act as a key resistance level for the index in the short term. It was followed by the 49,000 strike (10.57 lakh contracts) and the 50,500 strike (9.68 lakh contracts).
Maximum Call writing was visible at the 48,900 strike (with the addition of 73,500 contracts), followed by the 47,500 strike (57,765 contracts) and the 48,800 strike (47,270 contracts). The maximum Call unwinding was seen at the 50,000 strike, which shed 1.8 lakh contracts, followed by the 50,400 and 49,000 strikes, which shed 1.53 lakh and 1.16 lakh contracts, respectively.
Bank Nifty Put Options Data
On the Put side, the 48,000 strike holds the maximum Put open interest (with 13.23 lakh contracts), which can act as a key support level for the index. This was followed by the 46,000 strike (13.02 lakh contracts) and the 47,000 strike (12.52 lakh contracts).
The maximum Put writing was observed at the 48,500 strike (which added 1.84 lakh contracts), followed by the 48,700 strike (1.52 lakh contracts) and the 46,100 strike (1.26 lakh contracts). The maximum Put unwinding was seen at the 50,000 strike, which shed 1.05 lakh contracts, followed by the 49,500 and 47,900 strikes which shed 99,540 and 82,920 contracts, respectively.
Key Levels For The Bank Nifty
Resistance: 48,952, 49,134, and 49,429
Support: 48,362, 48,180, and 47,885
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