BSE – Heavy Call Writing Indicates Resistance Ahead________________________________________
📈 BSE – Heavy Call Writing Indicates Resistance Ahead | OI + Price Action Analysis
🕒 Chart Type: 15-Minute
📆 Date: July 7, 2025
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🔍 What’s Catching Our Eye:
BSE is trading near ₹2636, and the Option Chain is showing aggressive Short Build-Up on Calls from 2650 to 3000, clearly highlighting a resistance zone above current price. Meanwhile, Put writers are unwinding, especially at ₹2600 PE, confirming weak bullish conviction. Traders are playing defensively with bearish bias dominating.
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📌 What We’re Watching For:
If BSE breaks below ₹2600, we may see a quick slide toward ₹2550–2500. However, a sharp breakout above ₹2700 with strong volume may trigger a round of short-covering. Until then, upside looks capped due to excessive Call writing.
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📊 Volume Footprint:
Options activity is backed by strong volume —
• Over 8.9k contracts at ₹2700 CE
• Over 8.1k contracts at ₹2800 CE
• Over 7k contracts at ₹3000 CE
→ Traders are betting on price staying below 2700–2800 levels, creating a strong supply wall.
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📈 Option Chain Highlights:
• Calls (Short Build-Up):
o ₹2700 CE: +81,375 OI | Price ↓ 8.82%
o ₹2800 CE: +18,375 OI | Price ↓ 11.07%
o ₹3000 CE: +77,250 OI | Price ↓ 16.60%
o ₹2650 CE: +38,250 OI | Price ↓ 8.01%
• Puts:
o ₹2600 PE: -42,375 OI | Price ↓ 10.94% → Long Unwinding
o ₹2500 PE: +102,375 OI | Price ↓ 16.55% → Short Build-Up
📌 Inference:
Bulls are on the back foot. CE writers are dominating across all key strikes, and only the 2500 PE is showing fresh interest — which is far from spot, indicating potential room for further downside.
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🔁 Trend Bias:
🔴 Bearish to Neutral – Unless 2700 breaks cleanly
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🧠 Trade Logic / Reasoning:
Every CE strike from ATM to OTM is under short build-up — that's a clear ceiling forming. With no visible strength in Put writing near spot, the path of least resistance appears to be on the downside. Keep a close eye on ₹2600.
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📍 Important Levels to Mark:
🔺 Top Range (Resistance): ₹2731.60
🔻 Bottom Range (Support): ₹2590.70
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🎯 Trade Plan (Educational Purpose Only):
✅ Best Buy (Equity): Only if BSE crosses ₹2700 with volume
✅ Best Sell (Equity): Below ₹2600 for target ₹2550–2500
✅ Best CE to Long: ❌ None – All major Calls under Short Build-Up
✅ Best PE to Long: ₹2500 PE – Showing fresh bearish positioning
🟢 Demand Zone: NA
🔴 Supply Zone: NA
⚠️ Invalidation Below:
Bullish view invalidated if price sustains below ₹2600
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⚠️ Disclaimer:
This analysis is for educational purposes only.
STWP is not a SEBI-registered advisor.
No buy/sell recommendations are made.
Please consult your financial advisor before trading.
STWP is not responsible for trading decisions based on this post.
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