Banknifty analysis for 19 sept 2025

 Analysis of OI Data, Change in OI, and Candlestick Chart Patterns (Bank Nifty, Sep 18, 2025.

OI Data and Change in OI

Current OI Profile (30 Sep 2025 Expiry Option Chain):

Highest Call OI is at 55,800 (13.20L), followed by 56,000 (3.06L), indicating strong resistance from call writers.

Highest Put OI is at 55,000 (24.80L), with significant build-up at 55,500 (21.50L), suggesting robust support from put writers.

Max Pain is likely around 55,600-55,700, where the market may stabilize to minimize option sellers' losses.

Change in OI:

Calls: Notable unwinding at 55,300 (-71,820) and 55,400 (-1,140), indicating profit-taking or short covering by call sellers. Build-up at 55,800 (+42,840) shows fresh call writing, reinforcing resistance.

Puts: Significant unwinding at 55,300 (-48,440) and 55,400 (-23,415), suggesting put sellers covering as price rises. Build-up at 55,000 (+5,945) and 55,500 (+8,855) indicates fresh put writing, strengthening support.

PCR (Put-Call Ratio): Current PCR is 1.11 (OI basis), slightly bullish, implying balanced sentiment with a tilt toward put protection.

Implications: OI data suggests a range-bound market with strong support at 55,000-55,500 and resistance at 55,800-56,000. Unwinding of calls and puts at lower strikes reflects bullish momentum, but fresh call writing at 55,800 caps upside.

Candlestick Chart Patterns

Chart (4-Hour View):

Recent pattern shows a recovery from a low near 54,067.15, with a current price of 55,716.50, forming an ascending trend with higher lows (e.g., 54,852.25, 55,490.90).

Recent candles show small bullish bodies with upper shadows near 55,835.25, suggesting resistance and potential exhaustion. A "Tweezer Top" or "Doji" could form if price stalls here.

Volume spikes align with key levels (e.g., 11.04K at support, 10.18K recently), indicating active participation at turning points.

Technical Levels:

Price is above the 20-EMA (~55,200) and 50-EMA (~54,800), supporting a short-term bullish trend.

RSI (14) likely near 60-65 (neutral), not overbought, allowing room for upside.

Implications: Chart indicates a bullish recovery within a range, with potential for a pullback to support or a test of resistance. Low VIX supports range-bound action.

OI vs. Time and Multi-Strike OI

OI vs. Time: Call OI (13.6L) exceeds Put OI (17.0L) recently, with PCR dropping to 0.92-1.09, reflecting bullish sentiment. Total OI is ~1.64Cr (Calls) vs. 1.82Cr (Puts), showing balanced positioning.

Multi-Strike OI: Peaks at 55,800 (Calls) and 55,000 (Puts), reinforcing the range. The 55,800 CE price tracks Bank Nifty closely, indicating active call interest at resistance.

Major Support and Resistance Levels

Support Levels:

Immediate: 55,500 (high Put OI + chart pivot at 55,490.90). A break below could test 55,000 (max Put OI + psychological level).

Major: 54,852.25 (recent low + 50-EMA support). Below this, 54,067.15 (major chart support).

Resistance Levels:

Immediate: 55,835.25 (chart high + Call OI buildup). A break above could test 56,000 (next Call OI zone).

Major: 56,400-56,800 (higher Call OI + psychological resistance).

India VIX at 9.89: Implications

With India VIX at 9.89 (very low, historical average ~15-20), volatility is subdued, favoring tight ranges (e.g., 200-300 points) and low-risk trades. This supports scalping or range strategies, with minimal sudden moves.

Perfect Levels for Intraday Trading with Minimal Stop-Loss

Long (Buy) Setup:

Entry: 55,500-55,550 (dip to support; confirm with bullish candle or Put OI unwinding).

Stop-Loss: 55,400 (tight 100-150 point SL below support; aligns with unwinding zone).

Target: 55,800 (resistance; partial profit at 55,700). Upside: 200-300 points.

Why?: Aligns with strong Put OI support and bullish trend. Risk ~0.2-0.3% per trade; R:R ~1:2.

Short (Sell) Setup:

Entry: 55,800-55,850 (fade at resistance; confirm with bearish candle or Call OI buildup).

Stop-Loss: 55,950 (tight 100-150 point SL above resistance).

Target: 55,500 (support; quick 300-point move).

Why?: Viable if Tweezer Top forms, but less preferred due to bullish bias.

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