NIFTY OUTLOOK & OPTION CALL PUT TIPS FOR 3FEB 2023

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For the past four trading sessions, prices have found support near the 200 DMA, which stands at 17,600 on the daily scale. The monthly chart of the Nifty-50 has turned bearish as we witness the following bearish candle after the bearish engulfment of December 2022. As the bearish pattern has formed at all-time high levels, prices need to surpass the 18,888 high on a closing basis to see the Establishing the bearish candlestick to negligible make-or-break levels near its 50 EMA placed at 17,400 levels. A close below 17,400 – 17,300 could accelerate bearish momentum towards 17,000 – 16,800 which were previous support zones for the benchmark index. On the other hand, resistance below the 18,100 level is limited and if prices break above that level, the 18,300 levels will be the next resistance.

For Nifty, the maximum OI build is 17,000 put & 18,000 call option for expiry on February 2nd and for next week's expiry the max OI build is 17,500 put & 18,000 call & followed by 18,200 call option . The PCR ratio for next week expiration is 0.54 and for next week expiration is 0.68. The overall write data points to a bearish bias as call writing is higher than put writing. Immediate or transient recovery cannot be ruled out as the PCR ratio drops to almost 0.50.

 Resistance: 17800, 18000, 18200

Support: 17600, 17400, 17200