In yesterday’s trading session, the market experienced profit booking as investors awaited key decisions from the US Federal Reserve. The Fed opted to cut the benchmark interest rates by 50 basis points, a move that typically influences global markets, including India’s. On September 18, the Nifty 50 index closed down 41 points at 25,378 amidst notable volatility. As traders eye future movements, the critical resistance level is at 25,500; overcoming this could propel the Nifty towards the 25,800 mark. Conversely, the immediate support for the Nifty is pegged at 25,300, with a significant support line at 25,000 if the index encounters further downside pressure.
Key Support and Resistance Levels for Nifty
Understanding pivotal support and resistance points can enhance trading strategies. Here’s a breakdown of these key levels based on Pivot Points and Fibonacci retracement:
Nifty Support Levels
| Support Level |
|---|
| 25,307 |
| 25,260 |
| 25,185 |
Nifty Resistance Levels
| Resistance Level |
|---|
| 25,457 |
| 25,503 |
| 25,578 |
Bank Nifty Analysis
The Bank Nifty also revealed significant levels worth noting. Traders should pay attention to the following resistance and support points:
Bank Nifty Resistance Levels
| Resistance Level |
|---|
| 52,925 |
| 53,114 |
| 53,419 |
Bank Nifty Support Levels
| Support Level |
|---|
| 52,314 |
| 52,126 |
| 51,820 |
Options Data for Nifty and Bank Nifty
The options data paints a clear picture for traders:
Nifty Call Option Data
The maximum call open interest of 1.07 crore contracts was noted at the 26,000 strike, which is expected to serve as a significant resistance level in the upcoming sessions.
Nifty Put Option Data
On the put side, 71.31 lakh contracts were recorded at the 25,000 strike, establishing it as a pivotal support level in the near term.
Bank Nifty Call Option Data
For Bank Nifty, a maximum of 1.15 crore contracts were observed at the 52,800 strike, making it a key resistance point moving forward.
Bank Nifty Put Option Data
Meanwhile, 83.32 lakh contracts indicated maximum put open interest at the 52,700 strike, also important for near-term support considerations.
Market Sentiment and Volatility
Market volatility has picked up; however, it remains manageable. The India VIX, a measure of market sentiment, rose 6.22 percent to settle at 13.37. This level is critical, as long as it stays below 15, the outlook remains bullish.
Trading Activity Recap
Recent trading sessions have seen varying patterns of activity:
Long and Short Positions
A total of 12 stocks experienced a long build-up, indicating a rise in both prices and open interest. Conversely, 70 stocks saw long unwinding, characterized by falling prices and open interest. Additionally, a short build-up occurred in 68 stocks, while 34 stocks experienced short covering, indicating a potential reversal.
Put-Call Ratio Insights
The Nifty put-call ratio decreased to 1.1 from 1.3 in previous sessions. A ratio above 0.7 or reaching 1 generally reflects bullish sentiment, while levels dropping below 0.7 or approaching 0.5 suggest a bearish outlook.
F&O Ban Status
As part of the Futures & Options regulations, certain stocks face trading restrictions:
- Newly Banned: Oracle Financial Services Software
- Previously Banned: Aarti Industries, Balrampur Chini Mills, Biocon, and others.
- Removed from Ban: Bandhan Bank, Hindustan Copper
Disclaimer: The insights provided in this article reflect the opinions of various experts and should not be considered financial advice. Investors are encouraged to consult certified professionals before making any trading decisions.
