The Nifty 50 continued to trade within a range for the fourth consecutive session, ending 0.05 percent higher on August 10. Given that the index is trading above all key moving averages, the broader trend remains upward. However, momentum indicators and oscillators signal a continuation of the consolidation phase unless the index decisively breaks out of last Wednesday’s range of 24,500-24,700 on either side. A strong move above this range could take the index towards the 24,800-25,000 zone, while a break below it could bring the 24,400-24,300 levels into focus. According to experts, market participants should also closely monitor developments in the Middle East and movements in oil prices.
Here are 15 data points we have collated to help you spot profitable trades:
Resistance based on pivot points: 24,614, 24,640, and 24,682
Support based on pivot points: 24,530, 24,504, and 24,462
Special Formation: The Nifty 50 formed a Doji candlestick pattern on the daily charts, indicating indecisiveness among buyers and sellers. In fact, the index has formed indecisive candles over the last four sessions within the 24,500-24,700, but this price action has limited significance given that it has occurred within a range-bound movement. The broader structure remains strong, with the index staying above all key moving averages, as well as above the 23.6 percent Fibonacci retracement level of the recent rally and the downward-sloping trendline. Meanwhile, momentum indicators continue to signal a consolidation phase, indicating a lack of strong directional momentum in the near term.
Resistance based on pivot points: 57,930, 58,045, and 58,232
Support based on pivot points: 57,557, 57,442, and 57,255
Resistance based on Fibonacci retracement: 59,247, 61,787
Support based on Fibonacci retracement: 57,305, 56,441
Special Formation: The Bank Nifty formed a small bearish candle with upper and lower shadows on the daily charts, indicating a minor correction amid volatility. Overall, the index has been trading within last Tuesday’s range for the fourth straight session; hence, this formation has limited significance. Despite the sideways price action, the index continues to trade comfortably above its key moving averages, indicating that the broader trend remains constructive. Additionally, momentum indicators and oscillators are largely neutral, suggesting that range-bound trading is likely to continue in the near term.
According to the weekly options data, the 24,600 strike holds the maximum Call open interest (with 1.46 crore contracts). This level can act as a key resistance level for the Nifty in the short term. It was followed by the 25,000 strike (1.28 crore contracts) and 24,900 strike (1.17 crore contracts).
Maximum Call writing was observed at the 24,900 strike, which saw an addition of 41.25 lakh contracts, followed by the 24,850 and 24,600 strikes, which added 32.39 lakh and 26.66 lakh contracts, respectively. The maximum Call unwinding was seen at the 25,100 strike, which shed 8.71 lakh contracts, followed by the 24,400 and 24,300 strikes, which shed 4.5 lakh and 3.91 lakh contracts, respectively.
On the Put side, the maximum Put open interest was seen at the 24,500 strike (with 1.12 crore contracts), which can act as a key support level for the Nifty in the short term. It was followed by the 24,600 strike (1.09 crore contracts) and the 24,200 strike (85.23 lakh contracts).
The maximum Put writing was placed at the 24,500 strike, which saw an addition of 38.95 lakh contracts, followed by the 24,550 and 24,600 strikes, which added 35.57 lakh and 32.86 lakh contracts, respectively. The maximum Put unwinding was seen at the 25,000 strike, which shed 2.19 lakh contracts, followed by the 24,800 and 24,850 strikes, which shed 2.01 lakh and 76,375 contracts, respectively.
According to the monthly options data, the 58,000 strike holds the maximum Call open interest, with 23.79 lakh contracts. This can act as a key level for the index in the short term. It was followed by the 58,500 strike (8.7 lakh contracts) and the 57,000 strike (5.98 lakh contracts).
Maximum Call writing was observed at the 58,500 strike (with the addition of 86,430 contracts), followed by the 57,700 strike (85,140 contracts) and 58,000 strike (84,120 contracts). The maximum Call unwinding was seen at the 58,600 strike, which shed 28,590 contracts, followed by the 57,000 and 58,700 strikes, which shed 18,870 and 10,590 contracts, respectively.
On the Put side, the maximum Put open interest was seen at the 58,000 strike (with 16.48 lakh contracts), which can act as a key level for the index in the short term. This was followed by the 57,000 strike (9.59 lakh contracts) and the 57,500 strike (5.19 lakh contracts).
The maximum Put writing was placed at the 57,600 strike (which added 78,900 contracts), followed by the 57,700 strike (64,770 contracts) and 57,500 strike (23,190 contracts). The maximum Put unwinding was seen at the 58,000 strike, which shed 11,490 contracts, followed by the 58,100 and 58,500 strikes, which shed 9,750 and 9,240 contracts, respectively.
The Nifty Put-Call ratio (PCR), which indicates the mood of the market, rose to 0.99 on August 10, from 0.89 compared to previous session.
The increasing PCR, or being higher than 0.7 or surpassing 1, means traders are selling more Put options than Call options, which generally indicates the firming up of a bullish sentiment in the market. If the ratio falls below 0.7 or moves towards 0.5, then it indicates selling in Calls is higher than selling in Puts, reflecting a bearish mood in the market.
The fear gauge, India VIX, rose 0.72 percent to 12.24 but remained well below alarming levels. As long as it sustains below the 14-15 zone, the market is unlikely to witness significant uncertainty, and the bulls may remain in their comfort zone.
A long build-up was seen in 47 stocks. An increase in open interest (OI) and price indicates a build-up of long positions.
33 stocks saw a decline in open interest (OI) along with a fall in price, indicating long unwinding.
69 stocks saw an increase in OI along with a fall in price, indicating a build-up of short positions.
64 stocks saw short-covering, meaning a decrease in OI, along with a price increase.
Here are the stocks that saw a high share of delivery trades. A high share of delivery reflects investing (as opposed to trading) interest in a stock.
Securities banned under the F&O segment include companies where derivative contracts cross 95 percent of the market-wide position limit.
Stocks removed from F&O ban: Kaynes Technology India, Life Insurance Corporation of India
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