Options chain analysis: key support and resistance levels in F&O stocks, do not miss this!

Options chain analysis: key support and resistance levels in F&O stocks, do not miss this!

Prajwal Wakhare
/ Categories: Trending, Mindshare, Options

The support levels appear to be concentrated around the 21,500 and 21,600 strikes, indicating potential strong support zones. On the contrary, the 21,700 and 21,800 strikes seem to act as resistance levels.

In the option chain analysis for the expiry date of January 11, 2024, the Nifty 50 is priced at Rs 21,618.70, experiencing a marginal increase of 73.85 (0.34 per cent) today. Noteworthy developments include varying Open Interest (OI) values, with substantial changes seen across different strike prices. The support levels appear to be concentrated around the 21,500 and 21,600 strikes, where OI is significant and accompanied by positive changes, indicating potential strong support zones. On the contrary, the 21,700 and 21,800 strikes seem to act as resistance levels, with a notable surge in OI and positive changes.

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It's crucial to observe the OI numbers at these support and resistance levels, as they provide insights into potential market sentiments and trader positions. The overall option chain suggests a mix of bullish and bearish expectations, and monitoring these key levels could offer valuable cues for trading decisions in the coming sessions.

Most Active Stock Option Chain Analysis

Reliance Industries, with a current stock price of Rs 2,655 and today's change of positive 74.50 (2.89 per cent), reveals notable patterns and potential levels of interest. Looking at the expiry date of January 25, 2024, we observe a substantial Open Interest (OI) build-up at various strike prices, particularly noteworthy at 2,600, 2,620, and 2,640. These levels may serve as crucial support, backed by significant OI and volume.

On the upside, resistance levels can be identified around 2,700 and 2,720, where a spike in OI and volume is apparent. Traders should closely monitor the implied volatility (IV) trends, considering potential changes in market sentiment.

HDFC Bank’s shares priced at Rs 1,656, showing a marginal increase of 5.50 (0.33 per cent) today, a comprehensive analysis reveals key insights. As of the expiry date on January 25, 2024, the option chain reflects notable Open Interest (OI) changes, with varying strikes.

Noteworthy support levels include robust OI buildups at strikes such as 1,600, 1,620, and 1,650, indicating strong investor interest. On the upside, potential resistance levels are evident at higher strikes like 1,700 and 1,710, where OI changes and volume suggest significant activity. Volatility (IV) levels vary across strikes, providing insights into market expectations. Traders may consider monitoring the 1,650 and 1,700 strikes closely, given their substantial OI and volume.

Zee Entertainment Enterprises priced at Rs 259.15, reflecting a daily increase of 2.85 (1.11 per cent) as of today, anticipates key levels for the upcoming expiry on January 25, 2024. Noteworthy support levels include the 255 and 250 strike prices, with Open Interest (OI) numbers at 4,191 and 4,657, respectively. On the upside, crucial resistance is observed at the 265 and 270 strike prices, accompanied by OI figures of 955 and 812.

The overall OI buildups suggest significant interest at both support and resistance levels, indicating potential inflection points for market sentiment. Traders may closely monitor the 260  strike price, given its substantial OI of 4,265, as it could act as a pivotal level influencing price movements in the sessions leading up to the expiration date.

Disclaimer: The article is for informational purposes only and not investment advice.

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