For the past week, the Nifty 50 has been trading between 24,100 and 24,500. According to experts, the consolidation can go on until it breaks either side of this range.
Following a two-day surge, the Nifty 50 fell 0.5 percent on October 30 as the market continued to consolidate ahead of the monthly expiration of Futures and Options contracts on October 31. Overall, for the past week, the index has been between 24,100 and 24,500. The consolidation might go on until it breaks either side of this range. According to experts, a dip below 24,100 might result in selling pressure that could push the index near the August low of 23,900, while a clear and sustained trade above 24,500 might initiate a new leg of upward movement.
1. Bank Nifty Key Level
We have compiled the following 8 points to assist you in identifying winning trades:
Pivot Points that indicate the resistance for Bank Nifty -52,106, 52,221, and 52,407
Pivot points that indicate the support for Bank Nifty – 51,734, 51,619, and 51,433.
Fibonacci retracement-based resistance: 52,336, 52,829
Fibonacci retracement-based support: 51,271, 50,276
Given that it has maintained its position within the upper band of the Bollinger Band and held above all significant moving averages, the Bank Nifty looks to be outperforming the Nifty 50 on the charts.
On Wednesday, though, it experienced some profit booking and dropped 1% to 51,808.The index traded above all of the major moving averages, including on the weekly period, which is encouraging.
2. Nifty 50 Key Level
Resistance based on pivot points: 24,455, 24,500, and 24,573
Support based on pivot points: 24,309, 24,264, and 24,191
On the daily charts, the Nifty 50 created a tiny bearish candlestick pattern with a long upper shadow, signifying pressure at higher levels. While the 20week EMA is critical for any possible gain on a weekly basis, the index continues to stay below the 20-, 50-, and 100-day EMAs, indicating a negative and consolidative trend.
3. Nifty Call Option Data
The 25,000 strike has the highest open interest, with 1.17 crore contracts, based on the monthly options data. In the immediate term, this level may serve as a crucial resistance level for the Nifty. The 24,600 strike (91.7 lakh contracts) and the 24,500 strike (1.12 crore contracts) came after it.
With an additional 44.96 lakh contracts, the 24,600 strike saw maximum call writing. The 24,500 and 24,400 strikes added 41.38 lakh and 30.46 lakh contracts, respectively. Following the 25,400 and 25,300 strikes, which resulted in the loss of 1.87 lakh and 1.74 lakh contracts, respectively, the 25,500 strike saw the greatest Call unwinding, with 6.41 lakh contracts lost.
4. Nifty Put Option Data
The 24,000 strike, which can serve as a crucial support level for the Nifty, saw the highest open interest on the put side (with 97.24 lakh contracts). The 24,300 strike (66.04 lakh contracts) and the 23,500 strike (68.15 lakh contracts) came after it.
Put unwinding occurred at the 24,500 strike, which resulted in the loss of 8.37 lakh contracts, followed by the 24,400 and 24,600 strikes, which resulted in the loss of 7.24 lakh and 1.88 lakh contracts, respectively, while the maximum Put writing occurred at the 23,400 strike, which resulted in the addition of 23 lakh contracts, followed by the 24,300 and 24,100 strikes, which resulted in the addition of 15.77 lakh and 10.73 lakh contracts, respectively.
5. Bank Nifty Call Data
With 69.47 lakh contracts, the 51,800 strike has the highest open interest, per the monthly options data. In the immediate run, this may serve as a crucial level for the index. The 51,900 strike (involving 60.46 lakh contracts) and the 52,000 strike (involving 43.83 lakh contracts) came next. The 51,800 strike (which added 63.92 lakh contracts) had the highest call writing, followed by the 51,900 strike (56.20 lakh contracts) and the 52,000 strike (30.02 lakh contracts).
On the other hand, the 53,000 strike had the highest call unwinding, with 4.08 lakh contracts lost, followed by the 51,500 and 51,000 strikes, which had 2.02 lakh and 1.94 lakh contracts lost, respectively.
6. Bank Nifty Put Data
With 1.1 crore contracts, the put side saw the most open interest at 51,800, which may serve as a crucial index level. The 51,700 strike (involving 43.51 lakh contracts) and the 51,000 strike (30.01 lakh contracts) came next.
The 51,800 strike saw the most put writing (84.94 lakh contracts added), followed by the 51,700 strike (27.96 lakh contracts) and the 51,900 strike (8.88 lakh contracts). The 52,300 strike saw the most put unwinding (10.38 lakh contracts shed), followed by the 52,000 and 51,500 strikes (9.07 lakh and 6.76 lakh contracts shed, respectively).
7. Put Call Ratio Data
On October 30, the Nifty Put-Call ratio (PCR), a measure of market sentiment, fell from 1.02 levels the day before to 0.91. Traders are selling more put options than call options, as shown by the rising PCR, which is higher than 0.7 or over 1, which typically signals the market’s bullish attitude solidifying. Selling calls is more common than selling puts, indicating a pessimistic market sentiment, if the ratio drops below 0.7 or approaches 0.5.
8. India Vix
Bulls experienced discomfort as volatility spiked up to a two-and-a-half-month high. Until volatility remains above the 15 threshold, they must exercise caution. The fear index, known as the India VIX, increased 6.85 percent to close at 15.51, the highest level since August 13.
