The Nifty 50 snapped its two-day winning streak and declined 0.76 percent on October 7 after the RBI expectedly raised the repo rate. The index is still not out of the woods technically, as bears continue to maintain control over the broader structure, although there are some signs of easing bearish momentum. FII selling, a weakening rupee and crude oil prices above $100 a barrel also weighed on market sentiment. The Nifty 50 needs to post a decisive breakout above 22,800 for further upside towards 23,000. Until then, consolidation may continue, with immediate support in the 22,500–22,400 zone, followed by 22,200 as a crucial support level, experts said.

Here are data points we have collated to help you spot profitable trades:
1) Key Levels For The Nifty50(22,603)
Resistance based on pivot points: 22,688, 22,728, and 22,794
Support based on pivot points: 22,557, 22,516, and 22,451
Special Formation: The Nifty 50 formed a bearish candle on the daily charts and sustained below all key moving averages, indicating weakness. The 10-, 20-, 50-, 100- and 200-day EMAs continued to slope downward. The RSI moved lower but remained slightly above the signal line. The MACD stayed below the reference line, although the red histogram bar contracted for the third consecutive session. These indicators suggest that the broader trend remains weak, while bearish momentum appears to be gradually easing.
2) Key Levels For The Nifty Bsnk(55,056)
Resistance based on pivot points: 55,280, 55,446, and 55,715
Support based on pivot points: 54,742, 54,575, and 54,306
Resistance based on Fibonacci retracement: 55,897, 57,285
Support based on Fibonacci retracement: 54,053, 52,784
Special Formation: The Bank Nifty formed a small-bodied green candle with noticeable upper and lower wicks, resembling a high-wave candlestick pattern on the daily timeframe and indicating indecision among bulls and bears. The banking index fell 0.13 percent and sustained below all key moving averages, although the 10-day EMA flattened out. The RSI, at 40.87, remained above its signal line, while the Stochastic RSI also continued to slope upward with a positive crossover. The MACD inched closer to the reference line, while weakness in the MACD histogram eased for the fifth consecutive session. These indicators suggest that bearish momentum is gradually weakening, although the broader trend remains weak.

3) Nifty Call Options Data:
According to the weekly options data, the 23,000 strike holds the maximum Call open interest (with 96.31 lakh contracts). This level can act as a key resistance level for the Nifty in the short term. It was followed by the 22,800 strike (94.57 lakh contracts) and 22,700 strike (86.09 lakh contracts).
Maximum Call writing was observed at the 22,800 strike, which saw an addition of 53.05 lakh contracts, followed by the 22,600 and 23,000 strikes, which added 47.19 lakh and 41.16 lakh contracts, respectively. There was hardly any Call unwinding seen in the 22,150-23,100 strike band.

4) Nifty50 Put Options Data:
On the Put side, the maximum Put open interest was concentrated at the 22,600 strike (with 62.5 lakh contracts), which can act as a key support level for the Nifty in the short term. It was followed by the 22,200 strike (60.68 lakh contracts) and the 22,500 strike (49.29 lakh contracts).
The maximum Put writing was placed at the 22,200 strike, which saw an addition of 31.55 lakh contracts, followed by the 22,600 and 22,400 strikes, which added 22.57 lakh and 12.48 lakh contracts, respectively. The maximum Put unwinding was seen at the 22,700 strike, which shed 12.18 lakh contracts, followed by the 22,450 and 22,800 strikes, which shed 6.1 lakh and 4.28 lakh contracts, respectively.

5) Nifty Bank Call Options Data:
According to the monthly options data, the 56,000 strike holds the maximum Call open interest, with 11.55 lakh contracts. This can act as a key resistance level for the index in the short term. It was followed by the 55,000 strike (8.48 lakh contracts) and the 56,500 strike (7.9 lakh contracts).
Maximum Call writing was observed at the 55,000 strike (with the addition of 72,540 contracts), followed by the 55,500 strike (44,850 contracts) and 56,500 strike (37,530 contracts). The maximum Call unwinding was seen at the 54,000 strike, which shed 51,930 contracts, followed by the 56,000 and 55,100 strikes, which shed 19,590 and 17,880 contracts, respectively.

6)Nifty Bank Put Options Data:
On the Put side, the maximum Put open interest was seen at the 55,000 strike (with 10.74 lakh contracts), which can act as a key support level for the index in the short term. This was followed by the 54,000 strike (7.01 lakh contracts) and the 56,000 strike (7 lakh contracts).
The maximum Put writing was placed at the 55,200 strike (which added 94,050 contracts), followed by the 55,500 strike (82,170 contracts) and 55,300 strike (66,210 contracts). The maximum Put unwinding was seen at the 56,500 strike, which shed 17,940 contracts, followed by the 56,000 and 54,900 strikes, which shed 14,940 and 5,520 contracts, respectively.

Report by Sunil Sankar Matkar
Source: Network18