US-Iran Talks Stall as Diplomatic Efforts Fall Short of Agreement

Nifty 50 Bounces Back Amidst Ongoing US-Iran Peace Talks

The Nifty 50 index experienced a sharp rebound on April 10, rising 1.2 percent as investors awaited the outcome of peace talks between the US and Iran over the weekend. Although the talks concluded without a definitive agreement, hopes for a permanent de-escalation in West Asia remain, with the Iranian government indicating that the talks will continue.

The technical setup of the index has strengthened further, with a bullish crossover in momentum indicators and the index sustaining above short-term moving averages. In the short term, the sustainability of the index above 24,000 will be crucial to watch. If the index breaks above this level, 24,300 is expected to act as immediate resistance, followed by 24,500. Conversely, if the index falls below 24,000, consolidation may be seen, with support at 23,800 and then 23,500, which is considered a critical support level.

Key Levels For The Nifty 50

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The Nifty 50 formed a bullish candle on the daily timeframe and sustained above short-term moving averages (10- and 20-day EMA), with these averages trending upward, indicating a healthy trend. However, the index remains below medium- and long-term moving averages. The RSI rose to 54.24, while the MACD held above the reference line and has gradually been inching toward the zero line, with a further rise in the green bars in the histogram. This indicates a strengthening momentum with a positive bias.

Key Levels For The Bank Nifty

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The Bank Nifty outperformed the Nifty 50, rising 2 percent and forming a green candle on the daily charts, signaling a continuation of the uptrend. The banking index climbed above the 50 percent Fibonacci retracement level (of the fall from the February 19 high to the April low). Further, the index also stayed above short-term moving averages, which are trending upward, though it remains below medium- and long-term moving averages. The RSI and MACD maintained a bullish crossover, indicating improving strength in the banking index.

Nifty Call Options Data

The 24,500 strike holds the maximum Call open interest (1.11 crore contracts), which can act as a key resistance level for the Nifty in the short term. The maximum Call writing was observed at the 24,500 strike, which added 24.52 lakh contracts, followed by the 24,700 and 24,600 strikes, which added 16.87 lakh and 14.21 lakh contracts, respectively. The maximum Call unwinding was seen at the 24,000 strike, which shed 23.16 lakh contracts, followed by the 23,800 and 23,900 strikes, which shed 19.99 lakh and 14.23 lakh contracts, respectively.

Nifty Put Options Data

The maximum Put open interest was seen at the 24,000 strike (61.65 lakh contracts), which can act as a key support level for the Nifty in the short term. The maximum Put writing was placed at the 24,000 strike, which added 36.25 lakh contracts, followed by the 23,900 and 23,950 strikes, which added 29.59 lakh and 22.50 lakh contracts, respectively. The maximum Put unwinding was seen at the 24,550 strike, which shed 1,040 contracts, followed by the 24,450 strike, which shed 650 contracts.

Bank Nifty Call Options Data

The 57,000 strike holds the maximum Call open interest (6.26 lakh contracts), which can act as a key resistance level for the Bank Nifty in the short term. The maximum Call writing was observed at the 57,500 strike, which added 46,050 contracts, followed by the 55,800 strike and 55,900 strike, which added 36,810 and 27,030 contracts, respectively. The maximum Call unwinding was seen at the 55,000 strike, which shed 1.6 lakh contracts, followed by the 55,500 and 56,500 strikes, which shed 1.34 lakh and 52,530 contracts, respectively.

Bank Nifty Put Options Data

The maximum Put open interest was seen at the 55,000 strike (6.8 lakh contracts), which can act as a key support level for the Bank Nifty. The maximum Put writing was placed at the 56,000 strike, which added 1.79 lakh contracts, followed by the 55,000 strike and 55,900 strike, which added 87,150 and 61,080 contracts, respectively. The maximum Put unwinding was seen at the 54,800 strike, which shed 17,670 contracts, followed by the 55,100 and 54,900 strikes, which shed 11,070 and 6,330 contracts, respectively.

Funds Flow (Rs crore)

Put-Call Ratio

The Nifty Put-Call ratio (PCR) jumped to 1.13 on April 10, compared to a 0.97 in the previous session. An increasing PCR, or being higher than 0.7 or surpassing 1, means traders are selling more Put options than Call options, which generally indicates the firming up of a bullish sentiment in the market.

India VIX

India VIX cooled below 19 to 18.85, falling 7.72 percent on Friday, indicating a supportive environment for equities. A further decline toward the 15–14 levels is necessary for bulls to regain a major comfort zone.

Long Build-up (79 Stocks)

A long build-up was seen in 79 stocks, indicating an increase in open interest (OI) and price, which suggests a build-up of long positions.

Long Unwinding (8 Stocks)

8 stocks saw a decline in open interest (OI) along with a fall in price, indicating long unwinding.

Short Build-up (15 Stocks)

15 stocks saw an increase in OI along with a fall in price, indicating a build-up of short positions.

Short-Covering (116 Stocks)

116 stocks saw short-covering, meaning a decrease in OI, along with a price increase.

High Delivery Trades

Here are the stocks that saw a high share of delivery trades, which reflects investing (as opposed to trading) interest in a stock.

Stocks Under F&O Ban

Securities banned under the F&O segment include companies where derivative contracts cross 95 percent of the market-wide position limit. Stocks added to F&O ban: Nil. Stocks retained in F&O ban: SAIL, Sammaan Capital. Stocks removed from F&O ban: Nil.