Domestic markets are expected to open on marginally in the green on Wednesday, amid mixed global cues.
Mandar Bhojane, Research Analyst, Choice Broking, said: In summary, the Nifty remains in a consolidation phase. The India VIX, a key measure of market volatility, rose marginally by 0.02 per cent, closing at 15.3050, reflecting elevated uncertainty. Open interest (OI) analysis indicates key levels to watch in the derivatives market, with the highest call OI at the 24,500 and 24,700 strike prices, suggesting resistance zones. On the other hand, the highest put OI at the 24,000 and 23,500 strikes highlights strong support levels.
“Investors are encouraged to accumulate quality stocks during dips, especially within these lower support zones, while maintaining disciplined risk management strategies,” he added.
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Gift Nifty at 24,255 signals a gain of about 40-50 points for Nifty at open. However, Asian markets are down in early trade, though marginally. According to analysts, the market to remain lacklustre and all eyes on rollover of open positions in derivative markets ahead of expiry. November monthly contracts at the NSE will expire on Thursday.
According to analysts, it is heartening to see the return of foreign portfolio investors as buyers in the last two days. Though it is early days, if the trend persists, the market will see only a limited downside, they added.
Dhupesh Dhameja, Derivatives Analyst, SAMCO Securities, said: Options data indicates a balanced sentiment, with call and put writing activity appearing nearly equal. The 24,500-strike call has accumulated the highest open interest at 95.69 lakh contracts, while the 24,000 strike put holds significant open interest of 66.40 lakh contracts. Key activity is concentrated between the 24,300–24,500 call range and the 24,200–24,000 put range, highlighting immediate resistance at 24,500 and firm support at 24,000. This tug-of-war between buyers and sellers emphasises the likelihood of a breakout dictating the next directional move.
“The put-call ratio (PCR) declined to 0.93 from 1.03, reflecting subdued sentiment as the market remains range-bound. The “max pain” level at 24,250 indicates limited downside risks in the near term,” he added.