F&O Cues: Key support & resistance levels for Nifty 50

F&O Cues: Key support & resistance levels for Nifty 50

by 5paisa Research Team Last Updated: Apr 04, 2022, 12:48 PM IST

The level of 18,000 will act as key support while 18,300 will be a strong resistance.

In yesterday’s trade, the frontline equity indices lost some of the momentum gained on 26th October. The Nifty 50 opened with a positive note on October 27, however, it gave up all its gain after sell-off in the market in the second half of the day. By the end of the day, it was down by 0.31%.

Today is also the monthly options expiry day. Looking at yesterday’s trading action in the F&O market, it seems that the market is likely to close between 18,100 and 18,300 in today’s trade. The highest put writing was seen at strike price of 17950 (11,148 contracts added on October 27), followed by 18,050 (6458 contracts added on October 27), while there was put unwinding at strike price 17,000 (10551 contracts shed), followed by 17,400 (10546 contracts shed).

Highest total put open interest of 83,880 contracts stood at strike price 18,000, which will a strong support for the market in today’s trade. This is followed by strike price 18200, which saw a total put option of 79,932 contracts, while strike price 17,800 has 61,339 contracts in open interest.

In terms of overall open interest on the call option side, maximum open interest stood at a strike price of 18,500, which will act as a strong resistance. Total call open interest of 1,43,705 contracts stood at a strike price of 18,500. Aggressive call writing was seen at strike prices of 18,300 and 18,350, which will act as a first resistance level. Total open interest at the strike price of 18,300 stood at 1,39,864.

Following table shows the difference between call and put option at strike price near to max pain of 18200.

 

Strike Price  

Open Interest (Call option)  

Open Interest (Put option)  

Diff(Put – Call)  

17,900.00  

9019  

53653  

44634  

18,000.00  

21648  

83880  

62232  

18,100.00  

25256  

56507  

31251  

18200  

102076  

79932  

-22144  

18,300.00  

139864  

38895  

-100969  

18,400.00  

109926  

16672  

-93254  

18,500.00  

143705  

25801  

-117904  

The Nifty 50 put call ratio (PCR) closed at 0.0.68. A PCR above 1 is considered bullish while a PCR below 1 is considered bearish.

Following table shows the participant wise action of key players on the index options front.
 

   

Index Put Options  

Client Type  

Change of OI*  

% Change of OI*  

Oct 27 2021  

Oct 26 2021  

Oct 25 2021  

Client  

-84268  

32.18%  

-346093  

-261825  

-286667  

Pro  

58420  

-110.80%  

5695  

-52725  

-35095  

DII  

600  

0.93%  

64790  

64190  

64190  

FII  

25247  

10.08%  

275607  

250360  

257572  

*Change from Previous Day  

   

   

   

   

   

 

   

Index Call Options  

Client Type  

Change of OI*  

% Change of OI*  

Oct 27 2021  

Oct 26 2021  

Oct 25 2021  

Client  

177013  

1828.27%  

186695  

9682  

100769  

Pro  

-164760  

150.75%  

-274052  

-109292  

-191180  

DII  

0  

0.00%  

401  

401  

401  

FII  

-12254  

-12.35%  

86956  

99210  

90010  

*Change from Previous Day  

   

   

   

   

   

  

   

Net Change in Open Interest  

Client Type  

Change of OI*  

% Change of OI*  

Oct 27 2021  

Oct 26 2021  

Oct 25 2021  

Client  

261281  

96.23%  

532788  

271507  

387436  

Pro  

-223180  

394.54%  

-279747  

-56567  

-156085  

DII  

-600  

0.94%  

-64389  

-63789  

-63789  

FII  

-37501  

24.81%  

-188651  

-151150  

-167562  

*Change from Previous Day  

   

   

   

   

   

SENSEX
54,514.80
262.27 (0.48%)
Nifty 50
16,246.40
76.25 (0.47%)
Nifty Bank
35,466.00
371.10 (1.06%)
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SENSEX
54,514.80
262.27 (0.48%)
Nifty 50
16,246.40
76.25 (0.47%)
Nifty Bank
35,466.00
371.10 (1.06%)

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