Nifty Option Chain Analysis – 29th January 2025
Market Overview
On 29th January 2025, Nifty recorded a high of 23,181, a low of 22,977, and closed at 23,176. The market saw significant action with 51.5% open interest (OI) on the call side and 48.5% OI on the put side, indicating a slight bearish inclination from options writers.
Open Interest-Based Support & Resistance
- Support Levels:
- S1: 23,000 (10.07% OI in put side)
- S2: 22,000 (9.52% OI in put side)
- S3: 22,500 (8.15% OI in put side)
- Resistance Levels:
- R1: 24,000 (9.54% OI in call side)
- R2: 23,000 (5.85% OI in call side)
- R3: 23,500 (5.79% OI in call side)
Volume-Based Support & Resistance (As of 29.01.2025)
- Support Levels:
- S1: 23,000
- S2: 23,100
- S3: 22,900
- Resistance Levels:
- R1: 23,100
- R2: 23,500
- R3: 23,200
Market Sentiment & Trading Outlook
Put writers are actively defending the 23,000 level, making it a crucial support. If this level breaks, Nifty may slide toward 22,900–22,500. On the upside, 23,500 and 24,000 have strong call-side OI, indicating major resistance. If Nifty crosses 23,200–23,500, a bullish breakout toward 24,000 is possible.
With a nearly balanced OI percentage (51.5% call vs. 48.5% put), the market remains range-bound with a slight bearish bias. The day's price action suggests a consolidation phase with resistance at 23,200–23,500. A breakout or breakdown in the coming sessions will dictate the next major move.
Trading Strategy for 30th January 2025
- Bullish Traders: Look for long positions above 23,200 with a target of 23,500, keeping a stop-loss at 23,000.
- Bearish Traders: A break below 23,000 could push Nifty toward 22,900 or 22,500, making short positions viable with a strict stop-loss at 23,200.
- Option Writers: Straddle or strangle strategies near 23,000–23,200 may work well considering the tight range.
Conclusion
The market is currently in a consolidation phase with key levels at 23,000 (support) and 23,500 (resistance). Traders should watch for a breakout in either direction, which could dictate the trend for the next few sessions.
