Market Analysis Report for June 26

Overview

The market experienced a spectacular session after recent consolidation, achieving a new closing high, indicating strong bullish sentiment. Despite the weak breadth, the Nifty 50 surged by 183 points to close at 23,721, forming higher highs and higher lows. The momentum suggests that the index could advance towards 24,000, with support seen at the 23,500 levels in the upcoming sessions.

Resistance and Support Levels

Resistance Levels

1. 24,000 Strike: This level holds the maximum open interest with 1.07 crore contracts, making it a significant resistance level for the Nifty in the short term.
2. 24,200 Strike: Maximum call writing was observed here, with an addition of 10.61 lakh contracts, indicating strong resistance.
3. 24,100 Strike: Saw an addition of 7.44 lakh contracts in call writing, also acting as a key resistance.
4. 24,500 Strike: Holds 70.67 lakh contracts in open interest, making it another critical resistance level.

Support Levels

1. 23,000 Strike: This level has the maximum open interest on the Put side with 1.3 crore contracts, serving as a significant support level.
2. 23,500 Strike: With 87.94 lakh contracts, this strike acts as a crucial support level.
3. 23,600 Strike: Observed maximum Put writing with 47.69 lakh contracts added, reinforcing its role as a support level.

Open Interest Data Analysis

Call Side

• Maximum Open Interest: At the 24,000 strike with 1.07 crore contracts.
• Significant Call Writing: At the 24,200 strike (10.61 lakh contracts) and 24,100 strike (7.44 lakh contracts).
• Notable Call Unwinding: At the 24,000 strike (21.58 lakh contracts), followed by 23,500 (15.41 lakh contracts) and 23,400 strikes (9.74 lakh contracts).

Put Side

• Maximum Open Interest: At the 23,000 strike with 1.3 crore contracts.
• Significant Put Writing: At the 23,600 strike (47.69 lakh contracts), followed by 23,700 (29.46 lakh contracts) and 23,500 strikes (21.13 lakh contracts).
• Notable Put Unwinding: At the 22,700 strike (6.69 lakh contracts), followed by 22,900 (5.28 lakh contracts) and 22,500 strikes (4.35 lakh contracts).

Market Sentiment Indicators

Put-Call Ratio (PCR)

• Current PCR: Increased to 1.38 on June 25 from 1.14 in the previous session. A higher PCR above 1 indicates a bullish sentiment as traders are selling more Put options than Call options.

Volatility Index (India VIX)

• Current VIX Level: Rose to 14.31 from 14.06, marking a 1.81 percent increase. Despite this rise, it remains below all key moving averages, suggesting controlled market volatility.

Conclusion

The Nifty 50's bullish momentum is likely to drive the index towards the 24,000 mark, with strong support levels at 23,500 and 23,600. The open interest data and increasing Put-Call ratio reinforce the bullish sentiment, although the rise in volatility should be monitored.

Disclaimer

The information provided in this report is based on market analysis and is intended for educational and informational purposes only. It should not be construed as financial advice or investment recommendations. Trading in financial markets involves risk, and you should seek advice from an independent financial advisor before making any investment decisions. The author and publisher are not responsible for any losses or damages arising from the use of this information.

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