Option Chain Analysis: Key Levels and Market Sentiment for 6th Feb Expiry
Understanding the option chain data is crucial for identifying support and resistance levels, gauging market sentiment, and making informed trading decisions. Below is a detailed breakdown of the open interest (OI) and volume-based support and resistance levels, along with a combined conclusion for the upcoming expiry on 6th February 2025.
Open Interest-Based Support & Resistance Levels
Support Levels:
- S1: 23,000 – Strong support with 4.94% of total OI.
- S2: 23,200 – Significant support with 9.52% of total OI.
- S3: 22,500 – Notable support with 8.15% of total OI.
Resistance Levels:
- R1: 24,000 – Major resistance with 8.0% of total OI.
- R2: 24,500 – Strong resistance with 5.37% of total OI.
- R3: 23,500 – Moderate resistance with 4.59% of total OI.
Volume-Based Support & Resistance Levels (Dated 1st Feb 2025)
Support Levels:
- S1: 23,000
- S2: 23,500
- S3: 23,400
Resistance Levels:
- R1: 24,000
- R2: 23,500
- R3: 23,600
Market Sentiment Based on Open Interest
Call Writers (Bearish Sentiment): 57.9%
Put Writers (Bullish Sentiment): 42.1%
The dominance of call writers indicates a bearish bias in the market as of now.
Nifty Performance on 1st Feb 2025
- High: 23,632
- Low: 23,318
- Close: 23,482
Combined Conclusion
Support Zone: The critical support zone lies between 23,000-23,200, backed by strong OI and volume activity. If the index sustains above 23,200, a bullish move towards 23,500-23,600 is possible.
Resistance Zone: The immediate resistance is observed at 23,500-23,600, and a major hurdle exists at 24,000. A breakout above 24,000 could trigger a bullish rally toward 24,500.
Market Bias: The higher proportion of call writing (57.9%) suggests a cautious or slightly bearish outlook. However, if put writers increase their positions near support levels, a shift in sentiment could push the index higher.
Key Levels to Watch:
- If 23,500 sustains, an upside move toward 24,000 is possible.
- If 23,000 is breached, the index may test lower support levels around 22,500.
Option Chain Analysis for 13th Feb Expiry
The Option Chain data for the 13th February expiry provides crucial insights into market sentiment and potential support and resistance levels. By analyzing open interest (OI) and volume data, traders can anticipate key price levels for Nifty’s movement in the coming sessions.
Open Interest-Based Analysis
Support Levels:
- 23500 - Strongest support with 7.8% of total open interest.
- 23000 - Moderate support with 4.24% open interest.
- 22500 - Minor support with 3.92% open interest.
Resistance Levels:
- 24000 - Major resistance with 7.63% open interest.
- 23500 - Secondary resistance with 6.93% open interest.
- 24500 - Minor resistance with 5.68% open interest.
Volume-Based Analysis (01.02.2025)
Support Levels:
- 23000
- 23500
- 22500
Resistance Levels:
- 24000
- 24500
- 23500
Market Sentiment Analysis
The Option Chain shows a significant dominance of Call Writers with 57.4% OI, compared to Put Writers at 42.6% OI. This indicates a bearish bias, suggesting limited upside unless new buying interest emerges.
Price Action on 01.02.2025
- High: 23,632
- Low: 23,318
- Close: 23,482
Conclusion
- The market is showing strong resistance near 24000, as indicated by both OI and volume data.
- 23500 acts as a crucial pivot level, appearing as both support and resistance.
- Downside support exists at 23000 and 22500, with significant OI buildup.
- The dominance of Call Writers suggests a cautious approach unless a breakout above 24000 occurs.
- If Nifty holds above 23500, we may see an attempt towards 24000-24500 levels. However, a break below 23000 could trigger further downside pressure.
Traders should watch these key levels closely and align their strategies accordingly for the upcoming sessions.
Option Chain Analysis for 20th February Expiry
The option chain data provides a comprehensive view of market sentiment and potential price movements. By analyzing open interest and volume data, traders can gauge support and resistance levels effectively. Let's dive into the key insights for the 20th February expiry based on the latest option chain data.
Open Interest-Based Support and Resistance Levels
Supports
- S1: 23,500 – Holding 6.55% of the total open interest in the option chain.
- S2: 22,500 – Holding 6.15% of the total open interest in the option chain.
- S3: 23,000 – Holding 6.08% of the total open interest in the option chain.
Resistances
- R1: 24,000 – Holding 15.87% of the total open interest in the option chain.
- R2: 24,500 – Holding 13.78% of the total open interest in the option chain.
- R3: 23,500 – Holding 9.95% of the total open interest in the option chain.
Volume-Based Support and Resistance Levels (as of 01.02.2025)
Supports
- S1: 23,000
- S2: 23,500
- S3: 22,500
Resistances
- R1: 24,500
- R2: 24,000
- R3: 23,500
Market Sentiment Based on Option Writers
Call Writers Open Interest: 63.9%
Put Writers Open Interest: 36.1%
This suggests that there is a higher bearish sentiment in the market, as call writers dominate over put writers.
Nifty's Price Action on 01.02.2025
- High: 23,632
- Low: 23,318
- Close: 23,482
Conclusion
- Strong Resistance Zone: 24,000 - 24,500, as indicated by the highest open interest and volume resistance levels.
- Support Zone: 23,000 - 23,500, based on both open interest and volume data.
- Market Bias: With 63.9% call writing dominance, the market sentiment leans toward a bearish outlook unless significant put writing emerges.
- Trading Perspective: Traders should watch 23,500 closely, as it serves both as a support and resistance based on different parameters. A breakout above 24,000 could signal bullish momentum, while a breakdown below 23,000 may indicate further downside.
Stay tuned for further updates and analysis. Happy trading!
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Option Chain Analysis for Nifty Expiry (27th February 2025)
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Open Interest-based Supports & Resistances
Supports:
- S1 (23000): 8.0% OI of the total option chain
- S2 (23500): 7.38% OI of the total option chain
- S3 (22500): 5.3% OI of the total option chain
Resistances:
- R1 (24000): 6.73% OI of the total option chain
- R2 (24500): 6.45% OI of the total option chain
- R3 (23500): 6.31% OI of the total option chain
Volume-based Supports & Resistances (as of 01.02.2025)
Supports:
- S1 (23000)
- S2 (23500)
- S3 (22500)
Resistances:
- R1 (24000)
- R2 (24500)
- R3 (23500)
Option Chain Composition
47.5% Call Writers’ OI
52.5% Put Writers’ OI
Price Action (as of 01.02.2025)
High: 23632
Low: 23318
Close: 23482
Combined Conclusion for Weekly & Monthly Expiry
Key Support Levels Across Expiries:
- 23000
- 23500
- 22500
Key Resistance Levels Across Expiries:
- 24000
- 24500
- 23500
Market Sentiment:
Short-Term (6th & 13th Feb): Call writers dominate the market, suggesting a bearish or sideways movement. Traders should stay alert to any reversal signs at key levels.
Medium-Term (20th & 27th Feb): While call writing continues to dominate, the increase in put writing is a sign of possible support formation at critical levels like 23000 and 23500. This may indicate a potential shift toward more balanced or even bullish momentum in the medium term.
Key Observations:
- 24000 remains a major resistance level, acting as a tough barrier across all expiries.
- The 23000 and 23500 levels continue to serve as significant support zones.
- The shift from predominantly call writing to a rise in put writing signals a potential support buildup, which could stabilize the market.
Trading Strategy:
Watch the 23500 level closely, as it behaves as both support and resistance at various expiries. A breach above 24000 could confirm a bullish breakout, while a dip below 23000 may prompt further selling pressure.
Traders should remain cautious, especially since call writing dominates the market, signaling bearish sentiment for now. However, the increasing put writing around 23000 hints at stabilization, making the month-end expiry interesting.
Final Thought:
The market shows mixed signals, with call writing dominating the short-term outlook. However, the uptick in put writing hints at potential support formation, making the next few weeks crucial for traders. Keep an eye on 24000 for resistance and 23000-23500 for key support levels. Stay updated with market movements and adjust your positions accordingly to navigate through potential volatility. 🚀📊