Nifty, BankNifty Outlook or analysis based on option chain (Jan 23 25)
Funds Flow (Rs crore) Last Closing
DII 3,640.22
FII/FPI -4,026.25
Put-Call Ratio
The Nifty Put-Call ratio (PCR), which indicates the mood of the market, climbed to 0.88 on January 22, from 0.77 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, snapped four days of gains, falling 1.66 percent to 16.77. However, it remains in the higher zone, signaling caution for bulls.
Nifty Call Options Data
According to the weekly options data, the maximum Call open interest was seen at the 23,500 strike (with 1.06 crore contracts). This level can act as a key resistance for the Nifty in the short term. It was followed by the 24,000 strike (95.83 lakh contracts) and the 23,300 strike (89.58 lakh contracts).
Maximum Call writing was observed at the 23,300 strike, which saw an addition of 32.54 lakh contracts, followed by the 23,100 and 23,152 strikes, which added 23.68 lakh and 21.39 lakh contracts, respectively. The maximum Call unwinding was seen at the 24,000 strike which shed 24.23 lakh contracts, followed by the 24,100 and 23,750 strikes, which shed 5.31 lakh and 5.21 lakh contracts, respectively.
Nifty Put Options Data
On the Put side, the 23,000 strike holds the maximum Put open interest (with 1.04 crore contracts), which can act as a key support level for the Nifty. It was followed by the 23,100 strike (74.86 lakh contracts) and the 22,500 strike (56.89 lakh contracts).
The maximum Put writing was placed at the 23,000 strike, which saw an addition of 50.53 lakh contracts, followed by the 23,100 and 23,050 strikes, which added 46.61 lakh and 32.39 lakh contracts, respectively. The maximum Put unwinding was seen at the 22,400 strike, which shed 17.89 lakh contracts, followed by the 22,500 and 23,300 strikes, which shed 9.03 lakh and 4.82 lakh contracts, respectively.
Key Levels For The Nifty 50
Resistance:23,174, 23,218, and 23,290
Support:23,030, 22,986, and 22,914
Bank Nifty Call Options Data
According to the monthly options data, the maximum Call open interest was seen at the 50,000 strike, with 21.99 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 (15.38 lakh contracts) and the 49,500 strike (15.1 lakh contracts).
Maximum Call writing was visible at the 49,000 strike (with the addition of 2.9 lakh contracts), followed by the 49,500 strike (2.7 lakh contracts) and the 50,000 strike (2.4 lakh contracts). The maximum Call unwinding was seen at the 50,500 strike, which shed 42,900 contracts, followed by the 48,100 and 47,900 strikes, which shed 19,185 and 2,745 contracts, respectively.
Bank Nifty Put Options Data
On the Put side, the 47,000 strike holds the maximum Put open interest (with 14.62 lakh contracts), which can act as a key support level for the index. This was followed by the 48,000 strike (13.63 lakh contracts) and the 48,500 strike (9.83 lakh contracts).
The maximum Put writing was observed at the 47,500 strike (which added 1.23 lakh contracts), followed by the 48,600 strike (1.19 lakh contracts) and the 47,000 strike (1.08 lakh contracts). The maximum Put unwinding was seen at the 49,000 strike, which shed 75,855 contracts, followed by the 50,000 and 49,500 strikes which shed 75,030 and 54,045 contracts, respectively.
Key Levels For The Bank Nifty
Resistance:48,797, 48,964, and 49,234
Support:48,256, 48,089, and 47,819
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