By Ravi Singh

The benchmark indices are currently trading with a neutral to negative bias, while recommending a cautious approach. Fresh long positions are advised only if the Nifty decisively trades above the 24,500 mark, a level that could signal the onset of sustained positive momentum. However, prevailing market conditions indicate a higher presence of sellers, keeping the sentiment subdued. As of now, the highest OI on Nifty November monthly options is concentrated at the 23500 PE and 25,000 CE strikes. Specifically, the 25,000 CE has an open interest of approximately 7.3 million contracts, while the 23500 PE shows around 7.7 million contracts.

For a sustained recovery in market sentiment, the Nifty must breach and close above the 24,500 level. In terms of market flows, FIIs have been net sellers in the cash segment, offloading approximately Rs 42,370 crore, which could be signalling some caution or risk-off sentiment in the broader market.

Bank Nifty has shown a strong rebound from its key support zone of 49,800-50,000, supported by an OI addition of approximately 221,000 contracts on Friday. Despite this recovery, the broader trend is unlikely to shift unless the index sustains above the 52,600 mark. Notably, the highest OI on Nifty November monthly options is concentrated at the 51000 PE and 53000 CE strikes. Specifically, the 53000 CE has an open interest of approximately 2.7 million contracts, while the 51000 PE shows around 2.2 million contracts.

Key levels to watch

After witnessing strong buying from lower levels we expect 24000 would act as an immediate support level and 24500 will act as an immediate hurdle for further upside. We anticipate strong resistance in the 24,500-24,650 zone, while strong support is expected around the 23,450-23,600 levels. Thus, the range for Nifty during the monthly expiry of November is likely to be between 23750 – 24550.

Bank Nifty is expected to find strong support in the 49,800–50,000 range, while resistance is anticipated at around 52,600 in the near term. For the upcoming monthly expiry, the banking index is projected to trade within a broader range of 51,000–53,200. The immediate support for Bank Nifty is positioned in the range of 51,300–51,500, while the immediate resistance is identified near 52,600.

Strategy for the week

Nifty Short Strangle:

Sell Nifty Put 23900 @ 37

Sell Nifty Call 24600 @ 31

Spread 68 stoploss 110 target 8 (expiry November 28)

(Disclaimer: Ravi Singh is the Senior Vice President of Retail Research at Religare Broking Limited. Views, recommendations, opinions expressed are personal and do not reflect the official position or policy of Financial Express Online. Readers are advised to consult qualified financial advisors before making any investment decisions. Reproducing this content without permission is prohibited.)