Indian headline indices traded in the red on Wednesday amid selling pressure in bank and IT stocks. While the S&P BSE Sensex was down 168 points or 0.24% at 10 am and was trading at 69,382, the broader Nifty50 declined 43 points or 0.21% to trade at 20,848.
Chambal Fertilizer & Chemicals has given a huge upside spike of 7% on December 6, 2023, adding a significant amount of percentage change in the open interest seen on the option chain data. Technically the setup is coming near its important resistance zone along with the RSI being in the overbought space.
A look at the OI data for the weekly series suggests that significant Call Writing build-up is witnessed in 20,900 and 21,000 strikes in Nifty, while on the Put side, 20,800-20,700 witnessed considerable open interest additions.
Options data suggests a trading range of 19300-20100, with the 20100 mark as a crucial resistance zone. Highest call OI has moved to 20,000 strike while on the downside the highest put OI has moved higher to 19800 for the weekly expiry.
“Technically, Nifty Midcap and Nifty Smallcap are in a strong uptrend as they are marking the sequence of higher tops and higher bottoms. The uptrend remains intact as long as the sequence of higher tops and higher bottoms is sustained. Also, it is trading above its short and long-term moving averages. The momentum indicators and oscillators are also supporting the overall bullish chart structure,” he says.