Nifty, BankNifty Outlook or analysis based on option chain (Jan 17 25)
Funds Flow (Rs crore) Last Closing
DII 2,928.72
FII/FPI -4,341.95
Put-Call Ratio
The Nifty Put-Call ratio (PCR), which indicates the mood of the market, jumped to 1.01 on January 16, from 0.82 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, rebounded after a two-day decline, rising 1.36 percent to 15.47, which is an uncomfortable level for bulls.
Nifty Call Options Data
According to the weekly options data, the maximum Call open interest was placed at the 24,000 strike (with 45.52 lakh contracts). This level can act as
a key resistance for the Nifty in the short term. It was followed by the 24,200 strike (28.17 lakh contracts) and the 23,500 strike (26.11 lakh contracts).
Maximum Call writing was observed at the 24,000 strike, which saw an addition of 24.72 lakh contracts, followed by the 24,200 and 23,300 strikes, which added 18.56 lakh and 10.24 lakh contracts, respectively. The maximum Call unwinding was seen at the 23,200 strike, which shed 8.56 lakh contracts, followed by the 23,250 and 23,150 strikes, which shed 1.88 lakh and 14,775 contracts, respectively.
Nifty Put Options Data
On the Put side, the 22,500 strike holds the maximum Put open interest (with 31.73 lakh contracts), which can act as a key support level for the Nifty. It was followed by the 23,200 strike (26.31 lakh contracts) and the 23,000 strike (25.28 lakh contracts).
The maximum Put writing was placed at the 22,500 strike, which saw an addition of 15.79 lakh contracts, followed by the 22,400 and 23,000 strikes, which added 12.21 lakh and 10.91 lakh contracts, respectively. There was hardly any Put unwinding seen in the 22,400-24,350 strike band.
Key Levels For The Nifty 50
Resistance:23,371, 23,399, and 23,445
Support:23,280, 23,251, and 23,206
Bank Nifty Call Options Data
According to the monthly options data, the maximum Call open interest was seen at 51,000 strike, with 18.52 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 (15.51 lakh contracts) and the 49,500 strike (10.61 lakh contracts).
Maximum Call writing was visible at the 49,500 strike (with the addition of 1.48 lakh contracts), followed by the 49,400 strike (1.27 lakh contracts) and the 49,300 strike (1.21 lakh contracts). The maximum Call unwinding was seen at the 49,000 strike, which shed 3.88 lakh contracts, followed by the 51,000 and 50,000 strikes, which shed 2.54 lakh and 2.53 lakh contracts, respectively.
Bank Nifty Put Options Data
On the Put side, the 48,000 strike holds the maximum Put open interest (with 13.6 lakh contracts), which can act as a key support level for the index. This was followed by the 49,000 strike (11.87 lakh contracts) and the 48,500 strike (8.7 lakh contracts).
The maximum Put writing was observed at the 49,300 strike (which added 2.29 lakh contracts), followed by the 49,500 strike (1.91 lakh contracts) and the 49,000 strike (1.51 lakh contracts). The maximum Put unwinding was seen at the 48,000 strike, which shed 27,540 contracts, followed by the 51,000 and 48,800 strikes which shed 26,430 and 25,290 contracts, respectively.
Key Levels For The Bank Nifty
Resistance:49,419, 49,519, and 49,679
Support:49,098, 48,999, and 48,838
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