The Nifty 50 snapped its four-day winning streak and closed 0.25 percent down on profit booking, but managed to defend the 25,000 level, which coincides with the midline of the Bollinger Bands on October 8. The index again faced resistance at 25,200, which seems to be crucial for further upward movement toward the 25,250–25,450 zone. Overall, the trend remains in favour of the bulls, as the index sustained well above all key moving averages. As long as the index stays below 25,200, consolidation may continue with support at 25,000–24,900, according to experts.
Here are 15 data points we have collated to help you spot profitable trades:
1) Key Levels For The Nifty 50 (25,046)
Resistance based on pivot points: 25,153, 25,196, and 25,266
Support based on pivot points: 25,012, 24,969, and 24,898
Special Formation: The Nifty 50 formed a bearish candle with a long upper shadow and a minor lower shadow on the daily charts, indicating profit booking at higher levels. The back-to-back formation of a similar pattern suggests that the bulls are struggling to hold ground beyond key resistance zones. Despite this, the index remains well above all key moving averages, and the RSI still holds a positive crossover, though it has tilted down to 53.75. The MACD is on the verge of a bullish crossover, and the histogram has climbed above the zero line. All of this indicates that the overall trend remains positive, though caution may be needed near resistance levels.
2) Key Levels For The Bank Nifty (56,018)
Resistance based on pivot points: 56,232, 56,346, and 56,530
Support based on pivot points: 55,863, 55,749, and 55,565
Resistance based on Fibonacci retracement: 56,758, 57,628
Support based on Fibonacci retracement: 55,808, 55,379
Special Formation: The Bank Nifty fell 0.4 percent on profit-taking and formed a small bearish candle with long upper and lower shadows, resembling a high-wave-like candlestick pattern on the daily charts. This signals indecision among bulls and bears. The index stayed above all key moving averages, with both short- and medium-term moving averages trending higher. The MACD maintained its bullish crossover with a strong histogram, while the RSI (at 60.96) also sustained a positive crossover, though it has tilted down. All of this indicates that the overall trend remains bullish, but there is uncertainty in the near term.
According to the weekly options data, the 25,200 strike holds the maximum Call open interest (with 1.17 crore contracts). This level can act as a key resistance for the Nifty in the short term. It was followed by the 25,500 strike (92.38 lakh contracts), and the 25,100 strike (91.08 lakh contracts).
Maximum Call writing was observed at the 25,100 strike, which saw an addition of 65.55 lakh contracts, followed by the 25,200 and 25,150 strikes, which added 63.43 lakh and 45.75 lakh contracts, respectively. The maximum Call unwinding was seen at the 24,800 strike, which shed 46,725 contracts, followed by the 24,500 and 24,700 strikes, which shed 18,075 and 8,625 contracts, respectively.
On the Put side, the maximum Put open interest was seen at the 25,000 strike (with 78.33 lakh contracts), which can act as a key support level for the Nifty. It was followed by the 24,900 strike (64.33 lakh contracts) and the 24,500 strike (52.86 lakh contracts).
The maximum Put writing was placed at the 24,900 strike, which saw an addition of 32.29 lakh contracts, followed by the 24,600 and 25,050 strikes, which added 21.62 lakh and 17.26 lakh contracts, respectively. The maximum Put unwinding was seen at the 25,200 strike, which shed 70,050 contracts, followed by the 25,500 strike, which shed 69,375 contracts.
5) Bank Nifty Call Options Data
According to the monthly options data, the maximum Call open interest was placed at the 57,000 strike, with 21.29 lakh contracts. This can act as a key resistance level for the index in the short term. It was followed by the 58,000 strike (11.88 lakh contracts) and the 56,000 strike (11.44 lakh contracts).
Maximum Call writing was observed at the 56,000 strike (with the addition of 1.55 lakh contracts), followed by the 56,500 strike (1.48 lakh contracts), and the 58,000 strike (1.24 lakh contracts). The maximum Call unwinding was seen at the 55,500 strike, which shed 96,635 contracts, followed by the 54,900 and 55,200 strikes, which shed 39,515 and 21,140 contracts, respectively.
6) Bank Nifty Put Options Data
On the Put side, the 55,000 strike holds the maximum Put open interest (with 16.94 lakh contracts), which can act as a key support level for the index. This was followed by the 56,000 strike (11.65 lakh contracts) and the 57,000 strike (11.16 lakh contracts).
The maximum Put writing was observed at the 54,500 strike (which added 1.27 lakh contracts), followed by the 56,700 strike (54,320 contracts) and the 56,000 strike (45,920 contracts). The maximum Put winding was seen at the 56,500 strike which shed 64,225 contracts, followed by the 55,800 and 55,000 strikes, which shed 43,155 and 29,400 contracts, respectively.
The Nifty Put-Call ratio (PCR), which indicates the mood of the market, fell to 0.80 on October 08, compared to 1.03 in the previous session.
The increasing PCR, or being higher than 0.7 or surpassing 1, means traders are selling more Put options than Call options, which generally indicates the firming up of a bullish sentiment in the market. If the ratio falls below 0.7 or moves towards 0.5, then it indicates selling in Calls is higher than selling in Puts, reflecting a bearish mood in the market.
9) India VIX
The India VIX, which measures expected market volatility, climbed 2.61 percent to 10.31 but could not surpass its short-term moving averages. This still signals a comfort zone for the bulls.
A long build-up was seen in 23 stocks. An increase in open interest (OI) and price indicates a build-up of long positions.
11) Long Unwinding (65 Stocks)
65 stocks saw a decline in open interest (OI) along with a fall in price, indicating long unwinding.
12) Short Build-up (100 Stocks)
100 stocks saw an increase in OI along with a fall in price, indicating a build-up of short positions.
13) Short-Covering (24 Stocks)
24 stocks saw short-covering, meaning a decrease in OI, along with a price increase.
Here are the stocks that saw a high share of delivery trades. A high share of delivery reflects investing (as opposed to trading) interest in a stock.
Securities banned under the F&O segment include companies where derivative contracts cross 95 percent of the market-wide position limit.
Stocks added to F&O ban: Nil
Stocks retained in F&O ban: RBL Bank
Stocks removed from F&O ban: Nil
Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.
Disclosure: Moneycontrol is a part of the Network18 group. Network18 is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
