Oct 26, 2024 - NIFTY50 Weekly Analysis

Nifty50 Breakdown: Are We Headed for a Major Pause or More Pain Ahead? Weekly Chart Analysis Nifty50 has fallen below the 20EMA, now down by about 8.4% from its recent highs. The next crucial support lies at the 50EMA on the weekly chart—definitely a level to keep an eye on. More on #Nifty50 #niftyoptions

Daily Chart Insights On the daily timeframe, the index broke below the neckline of a Head and Shoulders pattern at 24,750 this week, experiencing significant selling pressure. With the RSI slipping into the oversold zone at 28, there’s a chance Nifty50 might consolidate or witness a pause in selling, especially if the weekly low at 24,073 remains intact. #niftytoday #Nifty50

#Niftyoptions Open Interest (OI) Data The OI data shows unwinding on the Put (PE) side at OTM strikes, while Call (CE) additions indicate increasing resistance overhead : 24,200 CE 23.04L in OI, with a modest 6.47L on the 24,200 PE side. 24,300 CE saw a significant 28.07L increase, while the 24,300 PE unwound 6.95L in OI. 24,400 CE added 17.83L in OI, with a large unwinding of 16.67L on the 24,400 PE side.

#stockmarketsindia Sentiment This trend suggests caution from market participants, with increasing CE positions signalling strong resistance levels ahead. Although the RSI is oversold, Nifty50 could remain under pressure while it struggles to break through these resistance zones. #niftyoptions #nifty50