Business News Desk, On the last trading day of last week i.e. Friday, September 20, the domestic stock market saw a great rise. The domestic equity benchmark index Nifty 50 reached a new closing high with a rapid rise. On Friday, it closed at 25,791 with a gain of 375 points. RSI and MACD are giving strong signals. In the monthly F&O expiry week, Nifty may have to struggle to cross the level of 26 thousand. On the other hand, talking about Bank Nifty, it jumped 1.4 percent on Friday and closed at the level of 53,793. Consider these 15 points before trading in the market today.
1. Important level for Nifty 50
On the daily chart, Nifty formed a long bullish candlestick pattern with above average volumes and it formed a higher high-higher low formation in another trading session. In the weekly timeframe, it broke out of the three-weeks congestion zone and formed a bull candle with a higher high-higher low formation. Talking about the important levels, it may face resistance at 25830, then 25950 and then 26112, while on the downside it may face resistance at 25527, then 25428, and then 25266 levels.
2. Important level for Bank Nifty
With above average volume, Bank Nifty formed a bullish candlestick pattern on the daily chart and it has crossed the horizontal resistance trendline. It has also formed a strong bullish candlestick pattern on the weekly timeframe. Talking about the important levels, it may face resistance at 53888, then 54268, and then 54661, while on the downside it faces resistance at 53239, then 52996, and then 52604 levels.
3. Nifty Call Options Data
According to monthly options data, the highest open interest was seen at 27 thousand level with 92.08 lakh contracts. This can act as an important resistance level for Nifty in the short term. This is followed by 62.97 lakh contracts at 26 thousand strike and 54.87 lakh contracts at 26,500 strike. The highest call writing was seen at 25700 strike where 14.9 lakh contracts increased, followed by 14.11 lakh at 26200 and 12.29 lakh at 27,000. The highest unwinding was seen at 25,500 where 19.23 lakh contracts decreased. This was followed by 12.56 lakh at 25,400 and 7.2 lakh at 26 thousand.
4. Nifty Put Options Data
On the put side, the highest open interest is at 25,000 strike with 1.08 crore contracts, which is an important support level for Nifty. After this, the highest open interest is at 25,500 strike with 75.05 lakh contracts and 24,500 strike price with 59.34 lakh contracts. The highest put writing was seen at 25.700 strike in which 44.21 lakh contracts increased. After this, 38.32 lakh contracts increased at 25,600 strike and 33.03 lakh contracts increased at 25,500. On the other hand, the highest put unwinding was seen at 25,000 strike where 8.15 lakh contracts decreased, followed by 29,450 contracts decreased at 27,000 strike.
5. Bank Nifty Call Options Data
According to monthly options data, the highest open interest was seen at 54,000 level with 22.57 lakh contracts. This can act as an important resistance level for Bank Nifty in the short term. This is followed by 18.64 lakh contracts at 55,000 strike and 14.05 lakh contracts at 53,500 strike. The highest call writing was seen at 54,000 strike where 3.24 lakh contracts increased, followed by 1.58 lakh at 53,800 and 1.35 lakh at 54,600. The highest unwinding was seen at 53,000 where 8.62 lakh contracts decreased. This was followed by 7.58 lakh at 53,200 and 7.13 lakh at 53,500.
6. Bank Nifty Put Options Data
On the put side, the highest open interest is at 53,000 strike with 23.77 lakh contracts which is a key support level for Nifty. After this, the highest open interest is at 52,500 strike with 16.99 lakh contracts and at 53,500 strike price with 13.39 lakh contracts. The highest put writing was seen at 53,500 strike in which 10.65 lakh contracts increased. After this, 5.97 lakh contracts increased at 53,400 strike and 5.34 lakh contracts increased at 53,300. On the other hand, no special activity was seen in put unwinding.
8. Put-Call Ratio
The Nifty put-call ratio, which gauges the market mood, jumped from 1.5 to 1.26 on September 20. A rise in PCR, or a rise above 0.7 or crossing 1, means that traders are selling put options more than call options, which indicates a strong bullish sentiment in the market. If this ratio falls below 0.7 or moves towards 0.5, it means that calls are selling more than puts, which indicates a bearish mood in the market.
9. India VIX
The day after the sharp fall, there was some increase in volatility. However, it still remains at a lower level and remains below all the important moving averages, which is a positive sign for the bulls. India VIX i.e. Fear Index jumped 2.57 percent from 12.47 to 12.79.
10. Long Build-up (68 stocks)
68 stocks showed long build-up. The rise in open interest (OI) and price indicates a build-up in long positions.
