Scattered OI Bases Signal Wider-Range Trading

The resistance level marginally rose by 200 points to 26,200PE, while the support level fell by 3,300 points to 20,650PE. The latest options data is indicating wider trading range with negative bias for the week ahead.

26,200CE has highest Call OI followed by 25,000/ 26,100/ 25,500/ 24,500/ 24,000/ 24,100 strikes, while 24,000/ 24,100/ 24,050/ 24,600 strikes recorded reasonable addition of Call OI. And no OI fall is seen at any strike.

Coming to the Put side, maximum Put OI is visible at 20,650 followed by 24,000/ 22,000/ 22,500/ 23,000/ 22,500/ 23,500 strikes. Further, 20,650/ 24,000/ 24,050/ 23,000 strikes witnessed moderate build-up of Put OI. Modest Put OI fall is seen at deep Put ITM/OTM strikes.

Dhirender Singh Bisht, associate vice-president (technical research-equity) at SMC Global Securities Ltd, said: “In the derivatives market, prominent Call Open Interest for Nifty seen at the 24,000 and 24,500 strikes, while the notable Put Open Interest was at the 24,000 strike. In upcoming session 24,000 level will play an important role in upcoming session.”

“The Indian market declined as geopolitical tensions between India and Pakistan escalated. Uncertainty over a potential conflict in the coming days has made investors nervous. However, positive news last week regarding a trade deal between the US and UK had a favourable impact on the Auto sector. Realty, PSU banks, and pharma turned out to be the major losers on the weekly chart, whereas Auto, Media, and Consumer Durables managed to close in the green,” added Bisht.

For the week ended May 9, 2025, BSE Sensex closed at 79,454.47 points, a drop of 1,047.52 points or 1.30 per cent, from the previous week’s (May 2) closing of 80,501.99 points. NSE Nifty too declined 338.7 points or 1.39 per cent to 24,346.70 points from 24,039.35 points a week ago.

Bisht forecasts: “Traders are advised to closely monitor news developments in the upcoming sessions for any signs of escalation or de-escalation in tensions between India and Pakistan. In the upcoming sessions, Nifty is expected to face resistance near 24,400, with support around 23,600.”

“Implied Volatility for Nifty’s Call options settled at 18.11 per cent, while Put options conclude at 18.72 per cent. The India VIX, a key market volatility indicator, closed the week at 21.01 per cent. The Put-Call Ratio of Open Interest (PCR OI) for the week was 1.21,” said Bisht.

Bank Nifty

Bank Nifty NSE’s banking index closed the week at 53,595.25 points, a fall of 1,520.10 or 2.75 per cent from the previous week’s closing of 55,115.35 points. “For Bank Nifty, the prominent Call Open Iwas seen at the 54,000 strike, whereas notable Put Open Interest at the 54,000 and 53,500 strikes,” remarked Bisht.