On October 12, 2026, the NIFTY50 index is expected to continue its momentum following a sharp bounceback on Friday. The key question is whether the index can maintain this positive trend and extend the buying activity on Monday. Open interest data from Friday reveals important support and resistance levels that traders should watch closely.
- NIFTY50 showed a strong bounceback of over 288 points on Friday.
- 22,500 put options added over 1 crore contracts, indicating strong support.
- 23,000 call options hold the highest open interest, marking strong resistance.
- Technical charts show potential reversal signs with bullish patterns.
- Global markets showed mixed signals, with Asian indices mostly down and US markets closing higher.
What does the open interest data indicate for NIFTY50?
Open interest data is a crucial indicator for understanding market sentiment. On Friday, the 22,500 put options added more than 1 crore contracts, which is a significant increase. This suggests that traders expect strong support around the 22,500 level for NIFTY50 ahead of the weekly expiry on Tuesday. On the other hand, the 23,000 call options have the highest open interest, indicating that this level acts as a resistance point. These zones form a renewed support and resistance range that traders are closely monitoring.
How did NIFTY50 perform technically on Friday?
Technically, NIFTY50 staged a smart recovery by surging over 288 points on Friday. On hourly charts, the index closed above the 20-day Exponential Moving Average (EMA), which is a positive sign. However, it faced resistance near the 50-day EMA levels, suggesting some caution. On daily charts, a bullish harami candlestick pattern appeared, which often signals a potential reversal from a downtrend. This pattern gives hope to bulls that the market may continue to improve.
What are the key support and resistance levels for NIFTY50?
The key support level is now at 22,200. If the index falls below this point, the weakness could intensify further. On the upside, 22,700 is a crucial resistance level. Breaking above this resistance could lead to improved bullish momentum. Traders should watch these levels carefully to make informed decisions.
How are global markets influencing NIFTY50?
Global markets provide context for NIFTY50's movement. On Monday morning, Asian markets opened mixed. Japanese, Korean, and Taiwanese indices declined, with Korea's Kospi falling by 1.9%. Conversely, Hong Kong's Hang Seng index rose by 0.8%. Meanwhile, crude oil prices dropped by about 1%, easing some concerns about regional tensions after attacks in Saudi Arabia. The US markets closed the previous week positively, with the Dow Jones rising over 420 points and the NASDAQ 100 and S&P 500 increasing by 0.6%. The upcoming US quarterly earnings reports starting Monday will also influence market sentiment globally.
What should traders keep in mind?
Derivatives trading involves significant risks and should only be undertaken by those who fully understand these risks. Using risk management tools like stop losses is essential. The information provided here does not constitute a recommendation for any particular stock or trading strategy but aims to inform about current market conditions.
Source: Market data and analysis as of October 12, 2026.
