Tuesday, January 7, 2025

NIFTY OUTLOOK & OPTION CALL PUT TIPS FOR 08-01-2025

 The Nifty continues to exhibit indecision as technical indicators present mixed signals. The Relative Strength Index (RSI) at 43 suggests bearish momentum, whereas a bullish crossover on the Stochastic RSI hints at a potential short-term recovery. This divergence highlights the lack of a clear directional bias, calling for heightened vigilance in market participation.

On the daily chart, the index formed an inside bar pattern, closing near the 23,700 level. This indicates a period of consolidation, with the market sentiment remaining cautious.

Key Levels to Watch

  • Support: Immediate support is seen at 23,600. A breach of this level could trigger further corrections towards 23,400 and 23,000.
  • Resistance: On the upside, resistance is positioned at 23,800, with a critical hurdle at 24,000.

Open Interest Data Insights

  • Call OI: The highest open interest is concentrated at the 24,000 and 23,800 strike prices, indicating strong resistance zones.
  • Put OI: On the downside, the highest open interest is at the 23,500 strike price, followed by 23,700, which may act as crucial support levels.

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