On October 8, for the second consecutive week, the market had managed to close rapidly. Reliance Industries, IT, PSU banks and select auto stocks saw buying on the last trading day after the RBI policy remained soft. BSE Sensex closed at 60,059.06 with a gain of 381.23 points. At the same time, with a gain of 104.90 points, it closed at the level of 17,895.20. It formed a small bullish candle matching the Doji pattern formation on the daily chart. Nifty had formed a bullish candle with a gain of 2 per cent on the weekly scale.
Shrikant Chauhan of Kotak Securities Says that technically the index has once again taken support near its 20-day SMA (simple moving average) and has seen a sharp bounce back. It has also maintained higher bottom series formation which is supporting a short term uptrend. We believe that the Daily and Intraday chart structure is positive and will remain positive in the near term as well.
He further said that support is visible at 17,800 for the positional traders. If Nifty stays above it, then we can see the level of 18100-18300 in it. On the other hand, if Nifty slips below 17,800, then we can see it sliding towards 17600-17500. Volatility is likely to remain in the market. In such a situation, level based trading with strict stoploss would be a better strategy for positional traders.
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 17843.07 and after that the second support is located at 17790.93. If the index moves upwards, then it may face resistance at 17944.57 then 17993.93.
The first support for Nifty Bank is located at 37598.0 and after that the second support is located at 37420.8. If the index turns upwards, then it may face resistance at 38028.8 then 38,282.4.
call option data
The maximum call open interest of 19.49 contracts has been seen at the 18000 strike, which will act as a key resistance level in the October series. After this, the highest call open interest of 16.36 lakh contracts is being seen at 17800. At the same time, there is a call open interest of 15.83 lakh contracts on the 18500 strike.
Call writing was seen on the strike of 18200. 1.93 lakh contracts were added to this strike. After that 92,100 lakh contracts have been seen to be added even at 17900. At the same time, 65,900 lakh contracts have been seen to be added even at 18300.
The maximum call unwinding was seen at the strike of 18000. After this, the highest call unwinding was on the strike of 17800 and then 17700.
put option data
The maximum put open interest of 33.46 contracts has been seen at the strike of 17000, which will act as an important resistance level in the October series. After this, the highest put open interest of 29.91 lakh contracts is being seen at 17500. At the same time, there is a Put Open Interest of 19.13 lakh contracts at the strike of 17800.
Put writing was seen on the strike of 17900. 3.18 lakh contracts were added to this strike. After that 2.88 lakh contracts have been seen to be added even at 18500. At the same time, 1.86 lakh contracts have been seen getting added even at 17100.
The maximum put unwinding was seen at the strike of 17700. This was followed by the highest put unwinding at the strike of 17300 and then 17000.
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