On 25th September 2019 Nifty opened at 11,564, made a high of 11,564 low of 11,416 and finally closed at 11,440. Today was one-sided selling which has happened in Nifty and as expected nifty took resistance from 11700 levels. So until we break and close above 11,700, chances are that the correction should continue.
Open interest wise maximum call open interest for the current month series is at 11,500 and 11,600 level, while maximum put open interest stands at 10,800,11,000, and 11,400. So these levels become logical support or resistance for the market in the short term.
Nifty short term support stands at 11,400. As tomorrow is the expiry day for the month, if we go by open interest analysis Nifty can close in the range 11,350 to 11,500.
As we can see from the daily chart of Nifty is above 200-day moving average and 50-day moving average. And the trend on daily is sideways. Nifty is near to a resistance trend line and has formed a Doji here, and has fallen sharply after that, indicating that bulls might take a breather and bears may gain control in the short term. So you need to be cautious if you are going long.
In the hourly chart, Nifty will find support at 11,350 levels ( which is Gap support ) also options data suggests 11,350 as support.
Open Interest Analysis of Nifty
If we analyze the open interest data of Nifty, it supports that Nifty range for the short term is 11,350 to 11,500.
From the graph of open interest, it is clear that 11,700 is still very crucial from the options point of view. Only if we go above 11,700 then we can see more upside. On the downside, we can see support at 11,350.
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