After two days of decline, the market once again saw a jump in the Muhurta trading on October 4. On this day Nifty closed above 17,900. Barring metals, all sectoral indices saw gains. On the day of Muhurta trading, Sensex closed at the level of 60,067.62 with an increase of 295.70 points. At the same time, Nifty closed at 17,916.80 with a gain of 87.60 points. It formed a bearish candle which closely resembles the Doji chart pattern on the daily chart. During this week, the Nifty saw a rise of 1.4 per cent. Bullish candle formation was seen on the weekly chart last week.
Karan Pai of GEPL Capital Says that the level of 18,050 (20-Day SMA) will act as a resistance for Nifty in the near future. As long as Nifty stays below 18,050, it may see further correction and may see us move towards 17,432 or trade sideways. On the other hand, if it sustains above the 20-Day SMA, then we can assume that the redemption phase or correction seems to be coming to a halt and Nifty may now be seen moving towards new highs at 18,400 -18,600 and beyond.
Last week, mid and smallcaps outperformed the heavyweights. The Nifty Midcap index had gained 0.79 per cent. On the other hand, smallcaps had gained 1.3 per cent. On November 5, the market was closed on the occasion of Diwali Balipratipada.
Here we are giving you some such data, on the basis of which it will be easy for you 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 17,895.73 and after that the second support is located at 17,874.67. If the index turns upwards, then it may face resistance at 17,942.73 then 17,968.67.
Nifty Bank
The first support for Nifty Bank is located at 39,480.3 and after that the second support is located at 39,386.9. If the index turns upwards, then it may face resistance at 39,700.9% then 39,828.1.
call option data
The maximum call open interest of 22.01 lakh contracts has been seen at the strike of 19000, which will act as a key resistance level in the October series. After this, the highest call open interest of 19.78 lakh contracts is being seen at 18500. At the same time, there is a call open interest of 18.73 lakh contracts at the strike of 18000.
Call writing was seen on the strike of 18700. 36,950 contracts were added to this strike. After that 28,800 contracts have been seen getting added even at 18300.
The maximum call unwinding was seen at the strike of 19000. This was followed by the highest call unwinding at 18000 and then 17800 strike.
put option data
The maximum put open interest of 24.43 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 23.27 lakh contracts is being seen at 17000. At the same time, at a strike of 18000, there is a Put Open Interest of 15.77 lakh contracts.
Put writing was seen on the strike of 17600. 19,700 contracts were added to this strike. After that 14,800 contracts have been seen getting added even at 18100. While 11,650 contracts are attached at 17900.
The maximum put unwinding was seen at the 17000 strike. This was followed by the highest put unwinding at the strike of 17800 and then 16,150.
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