Options Data Holds Positive Bias, But On Cautious Note

The 23,100CE has highest Call OI followed by 22,800/ 23,000/ 23,500/ 23,200/ 22,900/ 23,400/ 22,700 strikes, while 22,800/ 23,000/ 23,100/ 23,500/ 22,600 strikes recorded reasonable addition of Call OI.

Coming to the Put side, maximum Put OI is seen at 21,500PE followed by 22,300/ 21,000/ 22,600/ 22,000/ 22,100/ 22,200/ 21,600 strikes. Further, 21,400/ 21,900/ 22,300/ 22,600/ 21,800 strikes witnessed moderate to medium build-up of Put OI. And there’s no major OI fall on either side of optios chain.

Dhirender Singh Bisht, associate vice-president (technical research) at SMC Global Securities Ltd, said: “From derivatives front, marginal Put writing was observed at 22,500 strike, while Call writers seen shifting at 22,800 strike with highest Open Interest concentration.”

“Indian markets witnessed a sharp rebound from lower levels and ended the week on a positive note. Nifty snaps three week losing streak and closed with gains of nearly two per cent, while banking index ended nearly unchanged over the week. However, we have witnessed a sharp rebound in broader markets as small and mid-cap index surged sharply higher during the week with metal & PSU being among top gainers,” added Bisht.

For the week ended March 7, 2025, BSE Sensex closed at 74,332.58 points, a net recovery of 1,134.48 points or 1.54 per cent, from the previous week’s (February 28) closing of 73,198.10 points. NSE Nifty too moved up by 427.80 points or 1.93 per cent to 22,552.50 points from 22,124.70 points a week ago.

Bisht forecasts: “For upcoming week, we expect that volatility is likely to grip the markets as global uncertainties may weigh on sentiments. We advise traders to maintain positive bias yet cautious stance. For the upcoming sessions, the Nifty has a major support now in zone of 22,300-22,000 zone, while for Bank Nifty 48,000-47,800 zone would act as a support area. Nifty is now approaching towards its immediate hurdle of at 22,700 and will require fresh spurs to break past this level. A possible trigger could be resurgence in buying interest in major banking stocks, which have mostly remained on the side-lines during the recent rebound.”

The unabated selling pressure from highs triggered significant higher Call writing than the Puts as over one crore shares at 22,500 Call strike. Even ATM 22,200 Call strike has significantly higher Call base. Thus, a closure among Call writers can be perceived as a first sign of recovery, according to ICICIdirect.com.

India VIX fell 1.86 per cent to 13.47 level. “Implied Volatility for Nifty’s Call options settled at 12.73 per cent, while Put options concluded at 13.20 per cent. The India VIX, a key market volatility indicator, closed the week at 13.73 per cent. The Put-Call Ratio of Open Interest stood at 1.17 for the week,” remarked Bisht.

Bank Nifty

Bank Nifty NSE’s banking index closed the week at 48,497.50 points, a marginal gain of 152.80 or 0.31 per cent from the previous week’s closing of 48,344.70 points.