The Top 10 Insights Before the Trading Bell for the January 6 Setup
As we gear up for the trading week ahead, analysts suggest that the Nifty may fluctuate between 23,700 and 24,500.
1. GIFT Nifty:
The GIFT Nifty signals a positive opening for Indian markets, indicating an increase of 29 points.
2. Nifty Trading Strategy:
On January 3, after two consecutive days of gains, the Nifty 50 faced a setback due to profit booking, leading to a decline of 184 points despite closing above the 24,000 mark. Resistance is anticipated in the range of 24,200 to 24,250, which aligns with the 50-day and 100-day exponential moving averages (EMAs). Should the Nifty maintain its position, targets could be seen at 24,400 and 24,800. Conversely, if the index dips below 24,000, the critical support levels will be between 23,750 and 23,700, with immediate support around 23,900.
3. Key Levels for Nifty 50 (24,005):
-Support Levels: 23,975, 23,923, 23,839
-Resistance Levels: 24,143, 24,195, 24,279
4. Nifty Call Options Data:
The 25,000 strike stands out with the highest call open interest at 1.03 crore contracts, which could act as a significant resistance point. Following this, the 24,200 strike (73.15 lakh contracts) and the 24,500 strike (79.35 lakh contracts) are noteworthy. At the 24,500 strike, notable call writing has occurred, adding 49.83 lakh contracts. In contrast, 23,700 saw the most considerable call unwinding, with a reduction of 64,050 contracts.
5. Nifty Put Options Data:
The 23,700 strike leads the put side with 62.01 lakh contracts, establishing it as a key support level for the Nifty. Other significant strikes include 24,000 (55.43 lakh contracts) and 23,500 (48.62 lakh contracts). The highest put writing occurred at 23,700, which saw an addition of 34.88 lakh contracts. Conversely, 24,200 experienced the most extensive put unwinding, losing 5.46 lakh contracts.
6. Key Levels for Bank Nifty (50,989):
– Resistance Levels: 51,481, 51,662, 51,955
– Support Levels: 50,895, 50,714, 50,421
– Fibonacci Resistance: 51,570, 52,132
– Fibonacci Support: 50,671, 49,787
Prepare accordingly for the trading day ahead, keeping these insights and levels in mind!
7) Bank Nifty Call Options Overview
The 52,000 strike stands out with 17.02 lakh contracts, indicating the highest call open interest in the monthly options data. This level is likely to act as a significant resistance point for the index in the short term. Following this, the 51,500 strike (10.93 lakh contracts) and the 53,000 strike (16.29 lakh contracts) also hold considerable interest.
At the 52,000 strike, there was notable call writing with an additional 4.26 lakh contracts, along with the 51,500 strike (3.23 lakh contracts) and the 53,000 strike (2.98 lakh contracts). Throughout the strike range of 49,250 to 53,250, minimal call unwinding was observed.
8) Bank Nifty Put Options Overview
On the put side, the 50,000 strike leads with 11.53 lakh contracts, potentially representing a critical support level for the index. The 51,500 strike (10.26 lakh contracts) and the 51,000 strike (11.01% of contracts) follow closely.
The highest level of put writing occurred at the 50,000 strike, which saw an addition of 1.37 lakh contracts. This was followed by the 49,500 strike, increasing by 61,710 contracts, and then the 51,300 strike. strike, which saw 34,065 contracts added. In contrast, the largest unwinding happened at the 50,800 strike, losing 39,645 contracts, while the 50,200 and 50,700 strikes saw reductions of 38,175 and 30,120 contracts, respectively.
9) Put-Call Ratio Insights
The Nifty Put-Call ratio (PCR), which gauges market sentiment, saw a significant decline from the previous session’s level of 1.23 to 0.86 on January 3.
This decrease suggests that traders are writing more put options compared to call options. A PCR reading above 0.7 or over 1 generally indicates a strong bullish sentiment in the market. Conversely, if the ratio dips below 0.7 or nears 0.5, it reflects a more pessimistic outlook, as selling calls becomes more prevalent than selling puts.
10) India VIX Update
The India VIX, a key indicator of market volatility, continued to decline for a second consecutive day, falling by 1.44% to settle at 13.54. Bulls may gain confidence if this level remains below 14.
Read More: https://visionarydaily.in/what-are-the-most-anticipated-ipos-in-2025/
Complete Market Data: https://www.nseindia.com/
