Nifty, BankNifty Outlook or analysis based on option chain (Jan 28 25)
Funds Flow (Rs crore) Last Closing
DII 6,642.15
FII/FPI -5,015.46
Put-Call Ratio
The Nifty Put-Call ratio (PCR), which indicates the mood of the market, declined to 0.75 on January 27, from 0.84 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, a volatility index that measures expected market volatility, surged sharply by 8.29 percent to 18.13, marking its highest closing level since August 6, 2024. The elevated volatility heightens concerns among the bulls, especially ahead of the Union Budget over the weekend.
Nifty Call Options Data
According to the monthly options data, the 23,000 strike holds the maximum Call open interest (with 83.96 lakh contracts). This level can act as a key resistance for the Nifty in the short term. It was followed by the 23,500 strike (78.86 lakh contracts) and the 23,300 strike (69.86 lakh contracts).
Maximum Call writing was observed at the 23,000 strike, which saw an addition of 54.59 lakh contracts, followed by the 22,900 and 23,100 strikes, which added 27.76 lakh and 25.68 lakh contracts, respectively. The maximum Call unwinding was seen at the 22,000 strike which shed 24,825 contracts.
Nifty Put Options Data
On the Put side, the maximum Put open interest was seen at the 22,000 strike (with 96.01 lakh contracts), which can act as a key support level for the Nifty. It was followed by the 22,500 strike (58.39 lakh contracts) and the 23,000 strike (52.46 lakh contracts).
The maximum Put writing was placed at the 22,400 strike, which saw an addition of 14.01 lakh contracts, followed by the 22,600 and 22,200 strikes, which added 10.06 lakh and 7.97 lakh contracts, respectively. The maximum Put unwinding was seen at the 23,200 strike, which shed 12.35 lakh contracts, followed by the 23,000 and 23,300 strikes, which shed 9.96 lakh and 7.77 lakh contracts, respectively.
Key Levels For The Nifty 50
Resistance:22,959, 23,011, and 23,095
Support:22,790, 22,738, and 22,654
Bank Nifty Call Options Data
According to the monthly options data, the 50,000 strike holds the maximum Call open interest, with 31.16 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 (27.65 lakh contracts) and the 49,500 strike (17.73 lakh contracts).
Maximum Call writing was visible at the 49,000 strike (with the addition of 8.04 lakh contracts), followed by the 50,000 strike (6.08 lakh contracts) and the 48,000 strike (4.23 lakh contracts). The maximum Call unwinding was seen at the 49,200 strike, which shed 8.05 lakh contracts, followed by the 46,000 and 48,400 strikes, which shed 1.12 lakh and 69,975 contracts, respectively.
Bank Nifty Put Options Data
On the Put side, the maximum Put open interest was seen at the 47,000 strike (with 26.02 lakh contracts), which can act as a key support level for the index. This was followed by the 46,000 strike (16.05 lakh contracts) and the 48,000 strike (14.52 lakh contracts).
The maximum Put writing was observed at the 47,000 strike (which added 11.42 lakh contracts), followed by the 47,900 strike (2.83 lakh contracts) and the 48,100 strike (2 lakh contracts). The maximum Put unwinding was seen at the 47,500 strike, which shed 7.51 lakh contracts, followed by the 48,300 and 48,500 strikes which shed 1.78 lakh and 1.59 lakh contracts, respectively.
Key Levels For The Bank Nifty
Resistance:48,257, 48,370, and 48,551
Support:47,894, 47,782, and 47,601
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