NIFTY 50 Pre-Open Market OI Analysis Report - June 4

Market Overview

On June 3, the Nifty 50 experienced a robust gap-up opening and achieved a new closing high, closing above 23,250 for the first time with a significant gain of 733 points. This surge was driven by exit polls indicating a potential landslide victory for the NDA government for the third consecutive term. Market experts suggest that the index is likely to surpass 23,500, with immediate support anticipated at 23,000. One of the key drivers for this optimism is the index closing well above the upper end of the Rising Channel.

Call Open Interest (OI) Analysis

Highest OI:

• 24,000 Strike: 3,93,820 contracts
• 23,500 Strike: 2,84,290 contracts
• 24,500 Strike: 2,69,683 contracts

Maximum Call Writing:

• 24,000 Strike: 1,41,637 contracts
• 24,500 Strike: 86,451 contracts
• 24,200 Strike: 74,278 contracts

Maximum Call Unwinding:

• 23,000 Strike: -96,608 contracts
• 22,800 Strike: -39,792 contracts
• 22,500 Strike: -33,619 contracts

Put Open Interest (OI) Analysis

Highest OI:

• 22,500 Strike: 39.46 lakh contracts
• 22,000 Strike: 38.39 lakh contracts
• 23,000 Strike: 26.42 lakh contracts

Maximum Put Writing:

• 23,200 Strike: 16.12 lakh contracts
• 23,500 Strike: 15.55 lakh contracts
• 22,800 Strike: 10.57 lakh contracts

Maximum Put Unwinding:

• 22,100 Strike: -88,950 contracts

Key Resistance Levels (Call OI)

• Primary Resistance Level: 24,000 strike with the highest call open interest of 3,93,820 contracts.
• Secondary Resistance Levels: 23,500 strike with 2,84,290 contracts. 24,500 strike with 2,69,683 contracts.

Key Support Levels (Put OI)

• Primary Support Level: 22,500 strike with the highest put open interest of 39.46 lakh contracts.
• Secondary Support Levels: 22,000 strike with 38.39 lakh contracts. 23,000 strike with 26.42 lakh contracts.

Additional Insights

• Significant Call Writing at 24,000 Strike: Indicates strong resistance.
• Significant Call Unwinding at 23,000 Strike: Indicates a reduction in bearish sentiment around this level.
• Significant Put Writing at 23,200 Strike: Reinforces this as a support level.
• Significant Put Unwinding at 22,100 Strike: Indicates a reduction in bullish sentiment around this level.

Market Sentiment - Put-Call Ratio (PCR)

The Nifty Put-Call ratio (PCR) increased to 1.04 on June 3 from 1.00 in the previous session. A PCR higher than 0.7 or surpassing 1 generally indicates a bullish sentiment in the market, suggesting that traders are selling more Put options than Call options. Conversely, if the ratio falls below 0.7 or moves towards 0.5, it reflects a bearish sentiment, indicating higher selling in Calls than in Puts.

Conclusion

The current Nifty 50 pre-open market data analysis reveals significant levels of support and resistance, which are crucial for market participants:

• Resistance Levels: The primary resistance is at the 24,000 strike, followed by the 23,500 and 24,500 strikes. These levels have the highest call open interest and significant call writing, indicating strong resistance points.
• Support Levels: The primary support is at the 22,500 strike, followed by the 22,000 and 23,000 strikes. These levels have the highest put open interest and significant put writing, indicating strong support points.

This analysis provides valuable insights for traders and investors, aiding in making informed decisions based on market sentiment and expected movements. Monitoring these levels for any significant changes will be essential to anticipate market dynamics accurately.

Disclaimer

The information provided in this report is based on market data and analysis as of June 4 and is intended for informational purposes only. Trading in financial markets involves substantial risk, and it is important to conduct your own research or consult with a financial advisor before making any investment decisions. The report's authors are not responsible for any losses incurred as a result of using this information.