Options Data Holds Easing Resistance Level

Despite marginal short additions last week, Nifty futures OI remained largely intact amid. The Continued cash-based selling resulted in weakness in the broader markets

The latest options data points to easing resistance level, which fell 1,500 points to 24,000CE, while the support level remained at 22,000PE for a second consecutive week.

The 24,000CE has highest Call OI followed by 23,000/ 23,100/ 23,800/ 24,500 / 26,500/ 23,600/ 26,000/ 23,700/ 23,400 strikes, while 24,000/ 23,600/ 23,800/23,600/ 23,400/ 23,450/ 22,800/ 23,000 strikes recorded significant build-up of Call OI. And only OTM strike 26,500CE wit-nessed declining Call OI.

Coming to the Put side, maximum Put OI is seen at 22,000PE followed by 22,500/ 22,600/ 22,500/ 22,800/ 23,000/ 21,100/ 21,400 strikes. Further, moderate Call OI addition is seen at 22,300/ 21,800/ 21,700/ 21,400/ 21,100 strikes.

Dhirender Singh Bisht, associate vice-president (technical research) at SMC Global Securities Ltd, said: “In the derivatives market, prominent Call Open Interest for Nifty seen at the 23,100 and 23,000 strikes, while the notable Put Open Interest was at the 22,500 strike. For Bank Nifty, the prominent Call Open Interest was seen at the 49,500 and 50,000 strikes, whereas notable Put Open Interest at the 49,000 and 48,500 strikes.”

Continued selling pressure triggered aggressive Call writing than the Puts and ATM 23,000

Call itself holds higher Call base than any near the money Put strikes, while 23,300 strike hold the highest Call base.

“On the weekly chart, the broader indices closed flat, but in the red, with Nifty losing around half a percent, while Bank Nifty lost close to a quarter percent due to uncertainty over the impact of US trade policy. Metals, PSE, and energy were the major gainers, while pressure was seen in auto, pharma, and FMCG sectors on the weekly charts,” added Bisht.

For the week ended February 21, 2025, BSE Sensex closed at 75,311.06 points, a net loss of 628.15 points or 0.82 per cent, from the previous week’s (February 14) closing of 75,939.21 points. NSE Nifty too fell by 133.35 points or 0.58 per cent to 22,795.90 points from 22,929.25 points a week ago.

Bisht forecasts: “Technically, Nifty is trading close to its support level at 22,700. A break below this level could lead to further selling pressure, potentially pushing Nifty towards the 22,500 level. On the upside, resistance is seen at 23,000, followed by 23,200. Currently bias is under control of bears as of now so any market rise should be considered a sell-on-rise opportunity.”

India VIX fell 1.04 per cent to 14.53 level. “Implied Volatility for Nifty’s Call options settled at 13.50 per cent, while Put options conclude at 14.19 per cent. The India VIX, a key market volatility indicator, closed the week at 14.86 per cent. The Put-Call Ratio Open Interest (PCR OI) for the week was 0.90,” remarked Bisht.

Despite marginal short additions last week, Nifty futures OI remained largely intact amid. The

Continued cash-based selling resulted in weakness in the broader markets. FPIs increased their net short OI further in index futures. Sustainability above 23,300 level will be crucial for the any recovery in the headline index. Sustainability above 23,300 should be crucial for considering any extended recovery. On the other hand, a move below 22,800 level once again may extend the weakness.

Bank Nifty

NSE’s banking index closed the week at 48,981.20 points, lower by 118.25 or 0.24 per cent from the previous week’s closing of 49,099.45 points.