The Nifty 50 surged 1.6% on Aug 3, marking the fourth straight session of gains. It pushed past the April swing high of 24,600 and closed above the 23.6% Fibonacci retracement level. Momentum indicators showed bullish crossovers, while falling oil prices and a subdued India VIX added support.
After the recent uptrend, the index may consolidate. The 24,600‑24,500 zone is expected to act as immediate support. For further upside, the Nifty must stay above Monday’s high of 24,774, which is close to its 200‑day moving average. A sustained move above this level could open the door to 24,850 and later the 25,000‑25,150 zone.
Technical levels for the Nifty include pivot point resistances at 24,787, 24,848, and 24,947, and supports at 24,589, 24,528, and 24,429. The Bank Nifty rose 1.72%, forming a long bullish candle and remaining above all key moving averages. Its RSI climbed to 58.63 and the MACD is near a bullish crossover.
Weekly options data show the highest call open interest at the 24,600 strike (1.5 crore contracts), followed by the 25,000 (1.18 crore) and 24,800 (1.16 crore) strikes. Call writing peaked at 24,800 (48.48 lakh contracts). On the put side, the 24,200 strike had the most open interest (1.46 crore), followed by 24,500 (1.24 crore) and 24,600 (1.15 crore). Put writing was strongest at 24,600 (1.08 crore contracts).
Monthly options data indicate the largest call open interest at the 58,000 strike (22.18 lakh contracts), followed by 59,000 (13.28 lakh) and 57,000 (6.95 lakh). The biggest put open interest also sits at 58,000 (15.51 lakh). These levels act as key short‑term support and resistance for the index.
The Nifty Put‑Call Ratio rose to 1.4 on Aug 3, from 1.39 the day before, signalling a bullish sentiment as traders sell more puts than calls. The India VIX stayed in the lower zone at 11.925, well below its moving averages, indicating market stability.
Stock‑level activity shows 70 stocks with long build‑ups, 13 with long unwinding, 40 with short build‑ups, and 88 with short covering. High delivery shares in many stocks suggest increased investing interest.
In summary, the Nifty 50 remains on a bullish path but faces critical support at 24,600. Traders should monitor key resistance levels, options activity, and the VIX for clues on future market direction.