Nifty Data and Trading Strategy for 17 March 2018

NIFTY Analysis and Trading Strategy

Key Observations:

Nifty Spot Price: 22,397.20
Max Pain: 22,450This suggests that option writers will try to move the market towards this level by expiry.

PCR (Put-Call Ratio): 0.99PCR near 1.0 indicates a balanced market, with no extreme bullish or bearish bias.
A rise above 1.2 suggests bullishness, while a drop below 0.8 suggests bearishness.

OI (Open Interest) Data:Call OI Change: 430.58L (High call writing at resistance levels)
Put OI Change: 369.91L (Put writing suggests strong support)
Total Calls OI: 752.31L vs. Total Puts OI: 745.22L (Almost equal, indicating a neutral stance)

Support and Resistance Levels:

Immediate Resistance: 22,500 (Strong Call Writing)
Immediate Support: 22,300 (Strong Put Writing)

Next Resistance: 22,600
Next Support: 22,200

Trading Plan (March 17, 2025)

Scenario 1: Bullish Setup (Breakout Above 22,450)

Entry: Above 22,450 (Confirm breakout with volume)

Target 1: 22,500
Target 2: 22,600
Stop Loss: 22,350
Reason:If Nifty moves above max pain (22,450), bulls will gain momentum.
PCR indicates a balanced market, but a breakout with volume can trigger further upside.

Scenario 2: Bearish Setup (Breakdown Below 22,350)

Entry: Below 22,350 (Confirm breakdown with volume)

Target 1: 22,300

Target 2: 22,200
Stop Loss: 22,450
Reason:Call writing at 22,500 suggests strong resistance.
Breakdown below 22,350 may lead to further downside towards 22,300 and 22,200.

Final Strategy:

Bias: Neutral to Bullish (Watch for breakout above 22,450)
Intraday Plan:If Nifty opens flat → Wait for breakout/breakdown confirmation
If Nifty opens above 22,450 → Buy on dips
If Nifty opens below 22,350 → Sell on rise