Options data flags declining resistance level

Based on the latest NSE data, the support level declined 3,000 points to 23,000PE, while the resistance level fell 1,000 points to 25,000CE, which has highest Call OI followed by 24,500/ 25,550/ 24,400/ 26,000/ 24,300/ 25,300/ 25,500/ 26,500/ 27,000/ 27,500/ 27,950 strikes, while 25,000/ 24,300/ 24,100/ 24,200/ 24,350/ 25,200 strikes recorded hefty build-up of Call OI. Select Call OTM strikes witnessed moderate OI fall. Coming to the Put side, maximum Put OI is seen at 23,000PE followed by 22,250/ 22,500/ 22,300/ 22,500/ 22,800/ 23,200/ 23900/ 23,800/ 24,000/ 24,200/ 24,400/ 24,500/25,000 strikes. Further, the 23,000/ 23,300/ 22,250/ 23,400/ 23,800/23,900 strikes recorded a reasonable addition of Put OI. Marginal Call OI fall is visible at Put ITM strikes from 24,300PE inwards.

Dhirender Singh Bisht, associate vice-president (technical research-equity) at SMC Global Securities Ltd, said: “In the derivatives market, the significant Call Open Interest for Nifty seen at the 24,500 and 24,400 strikes, while the highest Put Open Interest was at the 24,000, 24,200 and 24,400 strikes.”

The market staged a modest recovery in last one hour on Friday. But no major covering was visible among Call writers. While the highest Call base is at 25,000CE, analysts expect fresh up leg only beyond 25,300 level. The current weakness was so far restricted. Hence, Nifty is expected to trade in 24,500-25,300 range.

“For the fourth consecutive week, NSE Nifty closed in the red due to weak earnings and FII selling in the cash market. FIIs have been net sellers throughout this month in the cash market. Nifty and Bank Nifty both closed with more than 2.5 per cent loss,” added Bisht.

BSE Sensex closed the week ended August 25, 2024, at 79,402.29 points, a net loss of 1,034.55 points or 1.28 per cent, from the previous week’s (August 16) closing of 80,436.84 points.