On Wednesday, September 11, 2024, domestic stock indices experienced notable volatility during trading. This fluctuation was primarily driven by investor anticipation surrounding the release of the US consumer inflation report for August. The outcome of this report is expected to significantly impact the Federal Reserve’s interest rate decisions in the coming week.
In this trading session, benchmark indices concluded on a weaker note, with the Sensex dropping 398 points (or 0.49%), closing at 81,523.16. Similarly, the Nifty index fell by 122.65 points (also 0.49%), finishing at 24,918.45. Market breadth revealed that 1,619 stocks advanced, while 2,345 stocks declined, and 106 remained unchanged.
Market Analysis
Market experts noted that the Nifty index has rebounded from a support zone defined between 24,800 and 24,850 on its daily chart. The current price and momentum indicators imply a probable consolidation of the market within the range of 24,800 to 25,200 for the near future.
Key Levels for Nifty50
| Support Levels | Resistance Levels |
|---|---|
| 24,915 | 25,148.8 |
| 24,789.1 | 25,256.5 |
| 24,555.4 | 25,490.2 |
A notable formation has appeared on the Nifty’s daily chart, where a small bearish candle has been created. This pattern indicates a lower top formation, suggesting a temporary period of weakness in the market.
Key Levels for Bank Nifty
| Support Levels | Resistance Levels |
|---|---|
| 51,031.7 | 51,439.45 |
| 50,791.1 | 51,606.6 |
| 50,383.35 | 52,014.35 |
Regarding the Bank Nifty, daily Bollinger bands are indicating a contraction, which suggests prevailing market uncertainty. In the short term, the Bank Nifty is likely to fluctuate between support at 50,650 and resistance levels at 51,380 and 51,500.
Options Data Insights
Nifty Call Options Data
According to weekly options data, the maximum call and put open interest exists at the 25,000 strike price, indicating a dominant straddle position with 2.22 crore call and 1.97 crore put combined open interest. Noteworthy call writing has been observed at the 25,100 strike level, establishing it as a critical resistance point.
Nifty Put Options Data
On the put side, the largest open interest is also at the 25,000 strike price, presenting substantial support for the Nifty, followed by the 24,500 strike price with significant open interest as well.
Market Sentiment and Volatility
Foreign Institutional Investors (FIIs) have shown notable activity in the market. The Put-Call Ratio (PCR) for the Nifty has decreased to 0.88, down from 1.07 in the previous session. A PCR above 0.7 is generally interpreted as a bullish signal, while a ratio below 0.7 indicates bearish tendencies.
The maximum pain point for Nifty stands at the 25,000 strike price, representing the strike at which options sellers would face the least loss upon expiration.
Market Volatility and Stock Trends
The India VIX, a measure of market volatility, has experienced a slight uptick, rising by 2% to close at 13.63%. This increase may reflect growing uncertainty among investors.
Open Interest Trends
A breakdown of stocks shows:
- Long Build-up: 18 stocks observed an increase in both open interest and price.
- Long Unwinding: 54 stocks experienced a decline in open interest and price.
- Short Build-up: 81 stocks saw increased open interest despite price declines.
- Short Covering: 31 stocks reported a decrease in open interest along with rising prices.
Stocks Under F&O Ban
The following stocks are currently under the Futures and Options (F&O) ban: ABFRL, Balrampur Chini Mills, Bandhan Bank, Aarti Industries, Chambal Fertilizers & Chemicals, Hind Copper, and RBL Bank.
