NIFTY 50 Pre-Open OI Data Analysis July 15

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Post Market Analysis - July 12

The market showcased a robust performance after a period of consolidation, marking a new all-time high on July 12. The Nifty closed above the 24,500 mark for the first time, gaining 186 points on Friday and 178 points over the week. This indicates strong bullish sentiment among investors.

Key Highlights:

1. Nifty closed at a new high, surpassing 24,500.
2. The index gained 186 points on Friday and 178 points for the week.
3. Sustaining above 24,400 could pave the way for further gains towards 24,800 in the upcoming sessions.
4. Crucial support is observed at 24,300.

Preopen Nifty 50 OI Data Analysis - July 15

According to the weekly options data:

• Resistance Levels:

• Maximum open interest is seen at the 25,000 strike with 68.86 lakh contracts, indicating this level as a key resistance in the short term.
• The 25,500 strike has the second-highest open interest with 41.68 lakh contracts.
• The 24,500 strike also holds significant open interest with 38.48 lakh contracts.

Call Writing:

• Maximum call writing was observed at the 25,500 strike, with an addition of 24.32 lakh contracts.
• The 24,900 and 25,000 strikes followed, with additions of 23.7 lakh and 21.26 lakh contracts, respectively.

Call Unwinding:

• The 24,200 strike saw the maximum call unwinding, shedding 7.28 lakh contracts.
• The 24,300 and 24,400 strikes shed 5.51 lakh and 3.7 lakh contracts, respectively.

Support Levels:

• On the Put side, the 24,000 strike holds the maximum open interest with 52.36 lakh contracts, acting as a key support level.
• The 24,400 and 24,300 strikes follow with 50.35 lakh and 44.87 lakh contracts, respectively.

Put Writing:

• Maximum put writing was observed at the 24,400 strike, with an addition of 33.84 lakh contracts.
• The 24,500 and 24,000 strikes followed with 27.48 lakh and 17.68 lakh contracts added, respectively.

Put Unwinding:

• The 23,200 strike saw the maximum put unwinding, shedding 63,925 contracts.

Resistance & Support

Resistance:

• 25,000 (68.86 lakh contracts)
• 25,500 (41.68 lakh contracts)
• 24,500 (38.48 lakh contracts)

Support:

• 24,000 (52.36 lakh contracts)
• 24,400 (50.35 lakh contracts)
• 24,300 (44.87 lakh contracts)

Conclusion and Recommendation

The market sentiment remains bullish, as indicated by the recent all-time high close and strong support levels. The Nifty's ability to sustain above the 24,400 level suggests potential upward movement towards 24,800. However, significant resistance at the 25,000 and 25,500 levels should be monitored closely.

Recommendations:

• For Traders: Consider buying on dips near support levels (24,300 - 24,400) with a target of 24,800. Be cautious around resistance levels (25,000 - 25,500) and consider profit booking near these levels.
• For Investors: Maintain a long-term bullish outlook but stay vigilant for any signs of trend reversal or increased volatility.

Disclaimer

This report is for informational purposes only and does not constitute investment advice. Trading in financial markets involves risk, and past performance is not indicative of future results. Consult with a qualified financial advisor before making any investment decisions.