Options Data Holds Positive Wide Range-Bound Trading

For Bank Nifty, the prominent Call Open Interest was seen at the 52,500 and 52,000 strikes, whereas notable Put Open Interest at the 51,000 strike. More writings were seen in Call options as compared to Put options, which indicate pressure on a bounce,” remarked Dhirender Singh Bisht

The latest options data on NSE after last Friday’s session is pointing to a fall in resistance level by 2,000 points to 25,000CE, while the support level marginally eased by 200 points to 22,250PE.

The 25,000CE has highest Call OI followed by 26,000/ 26,900/ 25,500/ 24,800/ 23,200/ 26,500 strikes, while 25,000/ 24,800/24,600/ 24,750/ 26,000 strikes recorded reasonable addition of Call OI. Modest Call OI fall is visible at 26,500/ 26,100/ 26,150/ 16,750 strikes.

Coming to the Put side, maximum Put OI is seen at 22,250PE followed by 23,000/ 22,500/ 22,300/ 22,500/ 23,500/ 23,700/ 24,000/ 24,200/ 24,100 strikes. Further, 22,250/ 22,600/ 23,000/ 23,500/ 24,100 strikes witnessed moderate to heavy build-up of Put OI.

Select strikes 22,400/ 22,450/ 24,250/24,300/24,500 strikes posted marginal fall in Put OI.

Dhirender Singh Bisht, associate vice-president (technical research-equity) at SMC Global Securities Ltd, said: “In the derivatives market, the highest Call Open Interest for Nifty seen at the 24,500 and 24,200 strikes, while the notable Put Open Interest was at the 24,200 and 24,000 strikes.”

Investor sentiment has turned positive after Donald Trump won the US elections. But unabated selling by FIIs impacted the trading.

“The confirmation of Trump’s Presidency in the US provided a boost to the Indian market, but continued Foreign Institutional Investor selling in India and sustained inflows into China kept the market largely flat for the week. As a result, many sectoral indices ended in the red,” added Bisht.

“Bank Nifty closed marginally lower, while NSE Nifty lost about half a per cent. The IT and PSU Bank sectors were the top performers, whereas realty, media, and energy stocks were the biggest laggards last week,” observed Bisht.

BSE Sensex closed the week ended November 8, 2024, at 79,486.32 points, a net recovery of 237.80 points or 0.29 per cent, from the previous week’s (November 1) closing of 79,724.12 points. For the week, NSE Nifty also moved up by 156.15 points or 0.64 per cent to 24,148.20 points from 24,304.35 points a week ago.

Bisht forecasts: “From a technical standpoint, Nifty’s next support levels are at 24,000 and 23,800, with key resistance at 24,500. Currently, Nifty is trading near its 100-day exponential moving average. The market is expected to move sideways to positive in the upcoming sessions, provided it holds above the 24,000 support level.”

Nifty OI was more or less stable for the week near 1.4 crore shares despite continued short buildup by FIIs. The net shorts from FIIs are reaching extreme levels of 1.5 lakh contracts. India VIX fell 3.15 per cent to 14.47 level.

“Implied Volatility for Nifty’s Call options settled at 13.29 per cent, while Put options concluded at 14.21 per cent. The India VIX, a key market volatility indicator, closed the week at 14.94 per cent. The Put-Call Ratio of Open Interest for the week was 1.15,” said Bisht.

Bank Nifty

NSE’s banking index closed the week at 51,561.20 points, lower by 112.70 points or 0.21 per cent from the previous week’s closing of 51,673.90 points. “For Bank Nifty, the prominent Call Open Interest was seen at the 52,500 and 52,000 strikes, whereas notable Put Open Interest at the 51,000 strike. More writings were seen in Call options as compared to Put options, which indicate pressure on a bounce,” remarked Bisht.