Nifty, BankNifty Outlook or analysis based on option chain (Jan 22 25)
Funds Flow (Rs crore) Last Closing
DII 3,500.32
FII/FPI -5,920.28
Put-Call Ratio
The Nifty Put-Call ratio (PCR), which indicates the mood of the market, dropped sharply to 0.77 on January 21, from 1.03 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
India VIX, the volatility index that measures expected market volatility, extended its northward journey for the fourth consecutive session, rising 3.9 percent to 17.05, the highest closing level since August 6, 2024, making the bulls further uncomfortable.
Nifty Call Options Data
According to the weekly options data, the 24,000 strike holds the maximum Call open interest (with 1.2 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 (92.49 lakh contracts) and the 23,400 strike (64.2 lakh contracts).
Maximum Call writing was observed at the 23,500 strike, which saw an addition of 46.41 lakh contracts, followed by the 23,400 and 24,000 strikes, which added 31.73 lakh and 29.39 lakh contracts, respectively. The maximum Call unwinding was seen at the 23,600 strike which shed 7.93 lakh contracts, followed by the 22,300 and 22,450 strikes, which shed 1,125 and 975 contracts, respectively.
Nifty Put Options Data
On the Put side, the maximum Put open interest was seen at the 22,500 strike (with 65.93 lakh contracts), which can act as a key support level for the Nifty. It was followed by the 22,400 strike (55.47 lakh contracts) and the 23,000 strike (53.88 lakh contracts).
The maximum Put writing was placed at the 22,400 strike, which saw an addition of 24.79 lakh contracts, followed by the 22,500 and 22,450 strikes, which added 3.83 lakh and 2.3 lakh contracts, respectively. The maximum Put unwinding was seen at the 23,200 strike, which shed 21.6 lakh contracts, followed by the 23,000 and 23,300 strikes, which shed 20.42 lakh and 19.14 lakh contracts, respectively.
Key Levels For The Nifty 50
Resistance:23,314, 23,420, and 23,592
Support:22,971, 22,865, and 22,693
Bank Nifty Call Options Data
According to the monthly options data, the 50,000 strike holds the maximum Call open interest, with 19.58 lakh contracts. This can act as a key resistance level for the index in the short term. It was followed by the 50,500 strike (12.92 lakh contracts) and the 49,000 strike (12.47 lakh contracts).
Maximum Call writing was visible at the 50,000 strike (with the addition of 2.84 lakh contracts), followed by the 49,000 strike (2.64 lakh contracts) and the 50,500 strike (2.63 lakh contracts). The maximum Call unwinding was seen at the 48,000 strike, which shed 13,545 contracts, followed by the 47,900 and 47,800 strikes, which shed 3,795 and 3,195 contracts, respectively.
Bank Nifty Put Options Data
On the Put side, the maximum Put open interest was seen at the 47,000 strike (with 13.54 lakh contracts), which can act as a key support level for the index. This was followed by the 48,000 strike (13.09 lakh contracts) and the 49,000 strike (9.32 lakh contracts).
The maximum Put writing was observed at the 47,100 strike (which added 21,315 contracts), followed by the 49,900 strike (13,545 contracts) and the 47,200 strike (9,300 contracts). The maximum Put unwinding was seen at the 49,000 strike, which shed 4.79 lakh contracts, followed by the 49,400 and 49,500 strikes which shed 1.85 lakh and 1.72 lakh contracts, respectively.
Key Levels For The Bank Nifty
Resistance:49,273, 49,536, and 49,961
Support:48,423, 48,161, and 47,736
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