US Market Volatility Expected Amid Tensions with Israel and Iran on April 8

Nifty 50 Extends Upward Journey, Despite West Asia War-led Caution

The relief rally has strengthened further, with the Nifty 50 adding seven-tenths of a percent in gains and extending its upward journey for the fourth straight session on April 7. The index sustained above the 10-day EMA and closed above the previous day's high for another session, despite West Asia war-led caution that kept the VIX near the 25 zone and oil prices above the $100 per barrel level.

According to experts, rising further and sustaining above the 23,300-23,400-23,500 levels (midline of Bollinger Bands, 20-day EMA, and golden ratio) is crucial for the index to move toward the psychological 24,000 zone. However, immediate support is seen at 22,700 (which coincides with Tuesday's low and the 78.6 percent Fibonacci retracement).

Key Levels for the Nifty 50 and Bank Nifty

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Nifty 50 and Bank Nifty Options Data

• Nifty 50:
  • Maximum Call open interest: 24,000 strike (38.89 lakh contracts)
  • Maximum Call writing: 24,000 strike (18.51 lakh contracts)
  • Maximum Put open interest: 22,500 strike (33.09 lakh contracts)
  • Maximum Put writing: 22,500 strike (17.9 lakh contracts)
• Bank Nifty:
  • Maximum Call open interest: 53,000 strike (6.14 lakh contracts)
  • Maximum Call writing: 53,000 strike (44,970 contracts)
  • Maximum Put open interest: 52,000 strike (6.01 lakh contracts)
  • Maximum Put writing: 52,700 strike (54,660 contracts)

Market Sentiment and Fear Index

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline

The Nifty Put-Call ratio (PCR) fell to 1.13 on April 7, compared to a 1.22 in the previous session. The India VIX declined further by 3.03 percent to 24.70, providing a bit of comfort for bulls. However, it is still in an elevated zone, signalling caution amid the West Asia war.

F&O Ban and Stocks with High Delivery Trades

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: Sammaan Capital, Stocks removed from F&O ban: Nil.

A long build-up was seen in 55 stocks, indicating a build-up of long positions. 33 stocks saw a decline in open interest (OI) along with a fall in price, indicating long unwinding. 58 stocks saw an increase in OI along with a fall in price, indicating a build-up of short positions. 67 stocks saw short-covering, meaning a decrease in OI, along with a price increase.