Options data holds range-bound trading
Options data points to range-bound trading with positive bias
The resistance level remained at 25,500CE for a second consecutive week, while the support level fell by 500 points to 22,000PE. The 25,500CE has highest Call OI followed by 24,000/ 24,500/ 25,000/ 23,900/ 23,700/ 23,800 strikes, while 25,500/ 24,500/ 24,200/ 23,800/ 23,700/ 23,300/ 23,100 strikes recorded heavy addition of Call OI. However, no major OI fall visible on Call strikes.
Coming to the Put side, maximum Put OI is seen at 22,000PE followed by 22,100/ 22,200/ 22,300/ 22,400/ 22,500/ 22,800/ 23,000 strikes. Further, 22,500/ 22,100/ 21,700/ 21,100/ 22,300 strikes witnessed reasonable build-up of Put OI. On Put bases also, no OI offloading took place.
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 23,300 and 23,500 strikes.”
“FIIs ongoing selling and disappointing quarterly results weighed down the broader indices Nifty and Bank Nifty dropped over 2.5 per cent and two per cent, respectively on a weekly basis. Selling was seen across the sectors, with maximum damage seen in small-cap and mid-cap and realty stocks,” added Bisht.
Unabated selling pressure triggered significant higher Call writing than Puts. ATM 23,600 Call itself holds higher Call base than any near the money Put strikes. Thus, sustainability above 23,600 itself may trigger a round of covering towards 24,000 level. On the other hand, till Nifty is not sustaining above 23,600 level, sell on rise strategy may be adopted with support expected near 23200 levels.
For the week ended February 14, 2025, BSE Sensex closed at 75,939.21, a net loss of 1,920.98 points or 2.46 per cent, from the previous week’s (February 7) closing of 77,860.19 points. NSE Nifty too fell by 630.70 points or 2.67 per cent to 22,929.25 points from 23,559.95 points a week ago. Bisht forecasts: “Technically Nifty is trading near to its support level at 22,800. If this level breached, it could test 22,500.”