Nifty 50 and Bank Nifty Overview

 

Market Opening Expectations : The GIFT Nifty suggests the stock market will open flat today. The US and Asian markets are showing mixed results.

US and Asian Market Updates 

The S&P 500 and Nasdaq ended lower on Tuesday due to weak performances from chip and big tech stocks ahead of this week's major tech earnings reports. However, the Dow Jones experienced modest gains.

Nifty 50 Analysis 

The Nifty 50 is anticipated to find strong support in the 24,600-24,500 range. If the index remains above 24,800 during any potential consolidation, the 25,000-25,200 range will be crucial to monitor for potential upward movement. On July 29, the Nifty 50 began the week strongly, approaching 25,000, but lost its gains in the afternoon and closed flat at 24,836.10, up by 1.25 points. Resistance levels based on pivot points are at 24,857, 25,009, and 25,095, while support levels are at 24,784, 24,731, and 24,645. A bearish candlestick pattern has formed with higher-than-average volumes, and the RSI shows negative divergence. This suggests that consolidation may be likely.

Bank Nifty Analysis 

For the Bank Nifty, resistance levels based on pivot points are at 51,512, 52,357, and 52,798, while support levels are at 51,204, 50,932, and 50,491. Fibonacci retracement levels show resistance at 51,888 and 52,234, and support at 50,567 and 49,714. The Bank Nifty closed 110 points higher at 51,406 after dropping over 900 points from its day’s high. It formed a bearish candlestick pattern with a long upper shadow, similar to a Shooting Star, suggesting a potential trend reversal. If the index remains above 51,000, which aligns with the 50-day EMA, consolidation may continue. Resistance on the upside may be around 52,000-52,300.

Options Data Insights for Nifty 50 

According to weekly options data, the 25,500 strike has the highest open interest with 79.55 lakh contracts, indicating a key resistance level for the Nifty in the short term. The 25,000 strike follows with 78.26 lakh contracts and the 25,200 strike with 69.94 lakh contracts. The most Call writing was at the 25,200 strike, adding 31.09 lakh contracts, followed by the 25,500 strike with 27.39 lakh contracts and the 26,000 strike with 21.99 lakh contracts. The highest Call unwinding occurred at the 24,500 strike, which lost 7.41 lakh contracts, followed by the 24,700 and 24,600 strikes with losses of 7.05 lakh and 6.68 lakh contracts, respectively.

Options Data Insights for Bank Nifty

On the Put side, the highest open interest is at the 24,000 strike with 70.21 lakh contracts, making it a key support level. The 24,500 strike follows with 61.38 lakh contracts, and the 24,400 strike has 53.45 lakh contracts. The highest Put writing was at the 24,000 strike with 16.59 lakh new contracts, followed by the 25,000 and 24,900 strikes with additions of 12.02 lakh and 7.3 lakh contracts, respectively. The most significant Put unwinding was at the 23,600 strike, which lost 7.57 lakh contracts, followed by the 23,900 and 23,700 strikes with reductions of 6.84 lakh and 5.11 lakh contracts, respectively.

Additional Options Data Insights 

For the 53,000 strike, the highest open interest is 44.33 lakh contracts, indicating key resistance in the short term. This is followed by the 52,500 strike with 29.93 lakh contracts and the 52,000 strike with 29.56 lakh contracts. The most Call writing occurred at the 53,000 strike, with an addition of 15.5 lakh contracts, followed by the 52,500 strike with 11.31 lakh contracts and the 52,300 strike with 9.3 lakh contracts. The highest Call unwinding was at the 51,000 strike, which lost 5.19 lakh contracts, followed by the 51,300 strike with a reduction of 2.19 lakh contracts and the 51,200 strike with a decrease of 1.43 lakh contracts.

Put-Call Ratio (PCR) 

The Nifty Put-Call ratio (PCR), a gauge of market sentiment, fell to 1.14 on July 29 from 1.36 in the previous session. A higher PCR, above 0.7 or greater than 1, indicates that traders are selling more Put options than Call options, usually signaling a bullish market sentiment. Conversely, a PCR below 0.7 or closer to 0.5 suggests that more Call options are being sold compared to Put options, reflecting a bearish sentiment.

India VIX Update 

The India VIX rebounded from its previous day’s losses but did not surpass key moving averages, indicating a positive outlook for bulls. It rose by 5.7% to 12.95 from 12.25.