Derivative Market Recap: A Volatile Day for Nifty
After a negative opening, Nifty witnessed a volatile session with sharp swings between 24,700–25,065 and finally settled with a loss of 0.70%. The Nifty Midcap 100 outperformed, ending with a modest gain of 0.15%.
Options Market Insights
| Metrics | Values |
|---|---|
Significant Call side OI | 25,000 Call |
Significant Put side OI | 24,500 Put |
Put-Call Ratio (PCR) | 0.749 |
Max Pain | 24,850 |
VWAP Range | 24,620 – 25,035 |
Sentiment | Higher Call writing vs. Put unwinding → Cautious Undertone |
Technical Overview
Benchmark indices witnessed a volatile trading session. Nifty closed 175 points lower while Sensex was down 625 points. Among sectors, the defence index outperformed and gained over 1%, while select auto, banking and IT stocks witnessed intraday profit booking.
After the initial decline, the market bounced back sharply, but again we saw a hefty profit booking at higher levels. Currently, the market is witnessing non-directional activity; perhaps traders are waiting for a breakout from either side.
Key Technical Levels
| Index | Support Levels | Resistance Levels |
|---|---|---|
Nifty | 24,700 / 81,100 | 25,000–25,150 / 82,200–82,700 |
Nifty (upside) | Retest of 24,600 or 24,450 / 80,900–80,500 | 25,300–25,500 / 83,200–83,800 |
Bank Nifty | 55,000 | 56,100 |
As long as the market trades within this range, a range-bound pattern is likely to persist. On the upside, a successful breach of 25,150 / 82,700 could take the market to 25,300 – 25,500 / 83,200 – 83,800. On the downside, a fall below 24,700 / 81,100 could lead to a retest of 24,600 or 24,450 / 80,900 – 80,500 levels.
Watchlist for Today
Today, keep a close eye on 24,600 levels (20-day SMA) as a bullish reversal from here could lead to a retest of 24,950-25,000 levels. A close below 24,600 would be negative. India VIX is still at 19 levels, which will keep the market volatile.
Final Thoughts
The market remains in a wait-and-watch mode, with traders keeping a close eye on the key support and resistance levels. Stay cautious, and let’s see if a breakout emerges in the coming sessions!
Investments in securities market are subject to market risks, read all the related documents carefully before investing. This information is purely backed by KSL research analyst based on research recommendation. Kotak Securities Ltd has registration granted by SEBI, Enlistment as RA and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors. Registered Office: 27 BKC, C 27, G Block, Bandra Kurla Complex, Bandra (E), Mumbai 400051. SEBI Registration No. INZ000200137 (Member of NSE, BSE, MSE, MCX & NCDEX), Member Id: NSE-08081; BSE-673; MSE-1024; MCX-56285; NCDEX-1262. Research Analyst INH000000586; BSE Enlistment No: 5035 for compliance T&C and disclaimers, Visit https://ddei5-0-ctp.trendmicro.com:443/wis/clicktime/v1/query?url=https%3a%2f%2fbit.ly%2flongdisc&umid=818E14E7-34FE-7906-906B-8F0B1C42A394&auth=d2c41a7df2e2ef1fca42bbbefb1c825d24cf1548-36f3d1caa4f5ef82b030dac05eca909befcec775
