Bank Nifty forms Doji-like candlestick pattern, indicates indecision between the bulls and bears

The Bank Nifty closed with a small-bodied bullish candle, showing a long upper shadow and a minor lower shadow on the daily chart, similar to a Doji-like candlestick pattern, indicating indecision between the bulls and bears. Despite this, the index reversed the higher highs formed in the previous sessions and ended the day with a 130-point loss, closing below the 5-day EMA on Friday.

Nifty Call Options Data:

The 23,100 strike price holds the maximum Call open interest at 84.92 lakh contracts, acting as a key resistance level for the Nifty in the short term. Other significant levels include the 22,800 strike (83.85 lakh contracts) and the 23,000 strike (82.67 lakh contracts). Maximum Call writing was observed at the 23,600 strike, which added 54.29 lakh contracts, followed by the 22,800 (49.42 lakh contracts) and 23,100 strikes (46.2 lakh contracts). The highest Call unwinding was seen at the 22,400 strike, shedding 2.85 lakh contracts, followed by the 22,300 and 22,200 strikes, shedding 2.01 lakh and 1.23 lakh contracts, respectively.

Nifty Put Options Data:

On the Put side, the 22,300 strike holds the maximum Put open interest at 83.65 lakh contracts, which can serve as a crucial support level. The 22,000 strike (69.27 lakh contracts) and 22,500 strike (66.71 lakh contracts) follow. Maximum Put writing was observed at the 22,300 strike, adding 48.06 lakh contracts, with the 22,000 and 22,600 strikes adding 23.09 lakh and 19.07 lakh contracts, respectively. No significant Put unwinding was seen within the 21,600 to 23,650 strike range.

Bank Nifty Call Options Data:

In the monthly options data, the 49,000 strike has the highest Call open interest, with 15.47 lakh contracts, marking it as a key resistance level for the Bank Nifty. The 50,000 strike (14.75 lakh contracts) and 48,500 strike (9.4 lakh contracts) follow. Maximum Call writing was seen at the 49,000 strike, with an addition of 2.25 lakh contracts, followed by the 48,500 strike (1.14 lakh contracts) and 48,600 strike (97,950 contracts). The highest Call unwinding occurred at the 50,200 strike, shedding 46,020 contracts, with the 49,900 and 48,300 strikes shedding 17,760 and 7,020 contracts, respectively.

Bank Nifty Put Options Data:

On the Put side, the 48,000 strike holds the maximum Put open interest at 13.05 lakh contracts, which can act as a key support level for the index. Other important levels include the 47,000 strike (10.56 lakh contracts) and 49,000 strike (8.38 lakh contracts). Maximum Put writing was observed at the 48,000 strike, with 73,170 contracts added, followed by the 47,500 strike (50,820 contracts) and the 47,900 strike (42,570 contracts). The highest Put unwinding was seen at the 47,000 strike, shedding 96,150 contracts, followed by the 47,200 and 50,000 strikes, shedding 66,690 and 45,810 contracts, respectively.

Funds Flow:

The funds flow data also points to significant movements, although further details would be required to analyze the complete picture.

Put-Call Ratio:

The Nifty Put-Call Ratio (PCR) has dropped to 1.08 on March 7, down from 1.14 in the previous session. A higher PCR (above 0.7) generally indicates a bullish sentiment, with more Put options being sold. Conversely, a PCR falling below 0.7 reflects a bearish market mood, with more Call options being sold.