Opening Zone: Gap Down, But Recovery Followed

On 3rd October, Nifty opened with a gap down at 24,759.55, reaching a high of 24,904.80 and a low of 24,747.55. The index closed strong at 24,894.25, up by 57.95 points (+0.23%). The India VIX eased 2.24%, reflecting reduced market anxiety amid steady buying interest.

My Trade: Profitable Iron Condor & Short Straddle Positions

Today’s trading involved managing an iron condor along with short straddle positions. Partial profits were booked as market conditions were favorable for range-bound strategies given the choppy price action. Some positions require further adjustment on Monday, reflecting active risk management and tactical options trading to benefit from controlled market volatility.

Early Movement: Selling Pressure Then Positive Divergence

Nifty started weak, declining in the first five minutes with a negative delta of 58,350 and a negative delta percentage of 14.27%, showing initial selling dominance. The cumulative delta to volume ratio of 1.4% reaffirmed sellers’ early efforts. Subsequently, the market turned choppy, providing good scalp trading opportunities amid oscillating price movements. At 10:50 AM, a positive delta divergence appeared, with a selling commitment ratio of 21 and an RL ratio of 11.29, signaling reduced selling pressure. From this point, the market trended upwards and absorbed selling orders after 2:30 PM, enabling a green close near the key psychological level of 25,000.

Market Profile Levels & Technical Points

• Point of Control (POC): 24,800
• Support Level: 24,700
• Resistance Level: 25,000
• Value Area High (VAH): 24,850
• Value Area Low (VAL): 24,750

These levels highlight important price zones crucial for next sessions’ trading decisions and possible breakout or pullback points.

Open Interest & PCR: Continued Bullish Sentiment

Open interest remained strong at the 24,800 call strike, with significant put open interest at 25,000. The Put Call Ratio (PCR) stood at 1.2, indicating bullish positioning and confidence in further upside or price stabilization near the current levels.

Sectoral Movement: Broad-Based Gains

All sectors ended positively today, reflecting broad-based buying participation and improving market breadth—a key sign of strong overall market health and investor confidence.

Macroeconomic Developments & Currency Outlook

The Reserve Bank of India proposed easing external borrowing rules to stimulate credit flow, a move likely to support economic activity and markets in the near term. The rupee managed to limit losses after a challenging week, although some pressure persists amid global currency volatility and external factors.

Why Did Nifty Rise Today?

• Initial selling absorbed early, thanks to positive delta divergence signaling weakening selling pressure.
• Strong absorption of sell orders in the afternoon fueled the upward rally.
• Broad sectoral participation supported sustained market strength.
• Supportive RBI credit flow measures and cautious currency management underpinned investor optimism.

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Disclaimer:
This blog is intended for educational purposes only and does not constitute financial advice. I am not a SEBI-registered advisor. Trading in securities involves risks; readers should consult certified financial advisors before investing. Any mention of trading platforms or images herein does not imply endorsements or promotions. Sharing personal trade P&L aims to dispel negativity around options trading and highlight risk management strategies. No courses or products are being sold; these are personal observations meant for learning.