DSIJ Mindshare

Options chain analysis: key support and resistance levels in F&O stocks, do not miss this!
Prajwal Wakhare
/ Categories: Trending, Mindshare, Options

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

Most Active Stock Option Chain Analysis

In the option chain analysis for the expiry date of January 18, 2024, the Nifty 50 is priced at Rs 21,647.20, experiencing a marginal increase of 28.50 points or 0.13 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 21,900 strikes seem to act as resistance levels, with a notable rollover in OI.

TradingView Chart

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.

DSIJ offers a service 'Pop Options" with recommendations for profitable options based on research and analysis to help subscribers make healthy profits. If this interests you, then do download the service details pdf here

Most Active Stock Option Chain Analysis

Vodafone Idea Ltd, with a current stock price of Rs 16 and today's change of positive 0.15 (0.93 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 16. These levels may serve as crucial support, backed by significant OI and volume.

On the upside, resistance levels can be identified around 18 and 20, where a spike in OI and volume is apparent. Traders should closely monitor the implied volatility (IV) trends, considering potential changes in market sentiment.

Tata Power Company Ltd’s shares priced at Rs 357, showing a marginal increase of 10.55 (3.05 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.

On the upside, potential resistance levels are evident at higher strikes like 370 and 360, where OI changes and volume suggest significant activity. Volatility (IV) levels vary across strikes, providing insights into market expectations. Traders may consider monitoring the increasing OI at 350 and fading at 340 strikes closely, given their substantial OI and volume change

IDFC First Bank Ltd priced at Rs 86.60, reflecting a daily increase of 2.70 (3.22 per cent) as of today, anticipates key levels for the upcoming expiry on January 25, 2024. Noteworthy support levels include the 86 and 85 strike prices, with Open Interest (OI) numbers at 838 and 1,244, respectively. On the upside, crucial resistance is observed at the 88 and 90 strike prices, accompanied by OI figures of 984 and 4,956.

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 90 strike price, given its substantial OI of 4,956, as it could act as a strong resistance 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.

Previous Article Price Volume breakout stocks: These stocks likely to be in focus tomorrow!
Next Article Penny Stocks: Stocks likely to be in focus tomorrow!
Print
1135 Rate this article:
4.1
Please login or register to post comments.
DALAL STREET INVESTMENT JOURNAL - DEMOCRATIZING WEALTH CREATION

Principal Officer: Mr. Shashikant Singh,
Email: principalofficer@dsij.in
Tel: (+91)-20-66663800

Compliance Officer: Mr. Rajesh Padode
Email: complianceofficer@dsij.in
Tel: (+91)-20-66663800

Grievance Officer: Mr. Rajesh Padode
Email: service@dsij.in
Tel: (+91)-20-66663800

Corresponding SEBI regional/local office address- SEBI Bhavan BKC, Plot No.C4-A, 'G' Block, Bandra-Kurla Complex, Bandra (East), Mumbai - 400051, Maharashtra.
Tel: +91-22-26449000 / 40459000 | Fax : +91-22-26449019-22 / 40459019-22 | E-mail : sebi@sebi.gov.in | Toll Free Investor Helpline: 1800 22 7575 | SEBI SCORES | SMARTODR