The selling pressure that started on October 19 in the market has continued on October 20 as well. BSE Sensex closed at 61,260 level, down 456 points in yesterday’s trade. At the same time, Nifty fell 152 points and closed at 18,266.60 level. Auto, FMCG, Metal, Pharma and IT stocks put pressure on the market.
In yesterday’s trade Nifty50 formed a bearish candle on the Daily chart by closing lower than the opening. In the market yesterday, for the second consecutive day, small-medium stocks have seen more fall than the giants. Nifty Mid and Small Cap closed with a fall of more than 2 per cent yesterday.
Nagraj Shetty of HDFC Securities Lets say that a long bear candle has been formed on the daily chart which is indicating a sharp reversal in the market. The recent swing high of 18,604 could now be the short term top formation for Nifty. He also believes that the short term trend may remain negative for Nifty. Further weakness may be witnessed for the next 1-2 days before any bounce off the lower levels. On the downside, support is seen for Nifty around 18,150-18,100.
Here are some statistics on the basis of which you will be able to catch profitable deals. It should be noted here that the Open Interest (OI) and volume of stocks in this story are the sum total of three months’ data, not just the current month.
Key support and resistance levels for Nifty
The first support for Nifty is located at 18,164.5 and after that the second support is located at 18,062.4. If the index moves upwards, then it may face resistance at 18,413.5 then 18,560.4.
Nifty Bank
The first support for Nifty Bank is located at 39,282.47 and after that the second support is located at 39,046.73. If the index turns upwards, then it may face resistance at 39,764.27 then 40,010.34.
call option data
The maximum call open interest of 27.55 lakh contracts has been seen on the 18500 strike, which will act as an important resistance level in the October series. After this, the highest call open interest of 21.41 lakh contracts is being seen at 19000. At the same time, there is a call open interest of 17.89 lakh contracts on the 18400 strike.
Call writing was seen on the strike of 18300. 7.94 lakh contracts were added to this strike. After that, 6.58 lakh contracts have been seen to be added even at 18400. At the same time, 6.31 lakh contracts have been seen to be added even at 18500.
The highest call unwinding was seen on the strike of 17800. This was followed by the highest call unwinding at 18000 and then 18100 strike.
put option data
The maximum put open interest of 25.23 lakh contracts has been seen at the strike of 17500, which will act as an important resistance level in the October series. After this, the highest put open interest of 22.52 lakh contracts is being seen at 18000. At the same time, there is a put open interest of 20.63 lakh contracts at the strike of 18500.
Put writing was seen on the strike of 18200. This strike added 1.83 lakh contracts. After that 93,600 contracts have been seen getting added even at 17500. While 38,100 contracts are connected at 17900.
The maximum put unwinding was seen on the 18500 strike. This was followed by the highest number of put unwinding at the strike of 18400 and then 18300.
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