On October 15, the Nifty 50 rallied 375 points, or 1.66%, to close at 22,997, while the Bank Nifty surged 495 points, or 0.89%, to 55,811. However, market breadth was negative, with declining shares outnumbering advancing shares on the NSE. Around 2,011 stocks declined, while 1,234 advanced.
Om Mehra, Technical Research Analyst at Samco Securities
Nifty positioning has turned bullish, with the India VIX easing 4% to 14.03, reducing some pressure on option premiums. The current Put-Call ratio (PCR) of 1.64 indicates a strong tilt towards puts near the spot level, while the monthly PCR stands at 1.03. Maximum Pain is placed at 22,900, just below the spot level.
Put open interest increased by 8.94 crore during the session, while Call open interest declined by 1.35 crore. Fresh Put writing was concentrated between 22,700 and 22,900, while Call open interest at 22,700 and 22,800 saw unwinding. Among the strikes around the spot level, Put open interest is highest at 22,500 and 22,700, while the highest Call open interest is concentrated at 23,000, followed by 23,300. Fresh Call writing remains modest and is concentrated between 23,100 and 23,400. Overall, derivatives positioning favours the upside, with 22,900 emerging as the first support level to watch.
Nifty formed a long bullish candle with a small upper wick. The index has recovered more than 3.5% from its 52-week low near 22,180 and closed above both the 20-day simple moving average (SMA) and the resistance level of 22,810. The Relative Strength Index (RSI) has climbed to 50 from oversold levels, while the Moving Average Convergence Divergence (MACD) has generated a positive crossover, although both MACD lines remain below zero.