16176-16182F – Support
16040F – Support
16356F – Resistance.
16290F – Singles selling area of 11/8
Note: When market tests these levels and show the expected behaviour i.e. holding a support or not crossing a resistance that combined with a datapoint becomes a valid trigger for a trade.
16250F – Support.
Note : These references are from the open interest data and are valid only for the first 10-15 minutes of next day’s open because new positions comein during market hours which will create new references to track.
Open of today was above supply zone of 16285-16310F from yesterday and we had a first 5 minute candle closing weak with a long wick followed by a red candle > This action is kind of use of gap up to build sell positions.
See in the image below that until 11:20-11:30 Put writers were never dominating.
However if you notice at 11:30 the first set of Put writers have entered into the market and from that point NF did see some stability and tried to rally and failed once but by EOD again catched up the momentum and closed near to sellers singles area around 16290F.
This Put writing has showed a support for NF at 16240-250F levels today where sellers have failed to move it lower and will be the level to watch at tomorrow’s open.