Higher Call OI bases keep pressure on bounces

The resistance level surged by 2,000 points to 27,000CE and the support level marginally eased by 550 points to 22,450PE as per the latest data on NSE after the Diwali Muhurat trading for Samvat-2081.

The 27,000CE has highest Call OI followed by 24,800/ 24,300/ 24,400/ 25,000/ 24,700/ 25,200/ 25,400/ 24,200/ 24,250 strikes, while 25,500/ 25,000/24,400/ 25,300 strikes recorded modest addition of Call OI. ITM strikes 24,000/ 24,250/ 24,200/ 24,100 strikes witnessed minute fall in OI.

Coming to the Put side, maximum Put OI is seen at 22,450PE followed by 22,500/ 23,000/ 23,500/ 24,000/ 24,200/ 24,300/ 24,400 strikes. Further, modest Put OI build-up was visible at 22,900/ 23,700/ 23,750/ 24,000 strikes. Only 23,050PE recorded a minute OI fall.

Dhirender Singh Bisht, associate vice-president (technical research-equity) at SMC Global Securities Ltd, said: “In the derivatives market, the highest Call Open Interest for Nifty seen at the 24,500 and 24,300 strikes, while the highest Put Open Interest was at the 24,200 and 24,000 strikes. More writing was seen in Call options compared to Put options indicating pressure on a bounce.”

Analysts expect that NSE Nifty may have support in 23,800–24,000 range and a possible short-covering rally from these levels. The Open Interest of 1.3 crore shares points to stability of Nifty OI during the last week. FII net shorts also fell marginally to 1.3 lakh contracts.

“Last week, NSE Nifty closed relatively flat, while Bank Nifty performed well, finishing in the green. Foreign institutional investors continued to be net sellers, and disappointing Q2 results added pressure to the broader indices. The IT and auto sectors were the biggest losers, whereas public sector banks and media stocks saw a rebound, emerging as the major gainers for the week,” added Bisht.