By Lokesh Sethia SEBI Register Research Analyst
BUY NIFTY 10850 TARGET 10950/10970 SL-10780
Nifty50 opened on flat note today at 10859 level, and traded in a range between 10801 to 10859 levels. It was traded in a narrow range. However, it closed with 0.31% down at 10821 level where as Bank Nifty was underperformed in Nifty50 and closed with 0.69% down at 27528 level.
Today Nifty formed a “small bearish belt hold pattern “on daily chart. Nifty50 closed above its all short to long term DEMA,which is bullish for coming session. If index manage to maintain above 10850 level, it could rise towards 10950-10970 levels over the next few trading days. Almost all sector closed in flat today, out of which Nifty pharma closed with 0.32%.
NIFTY OPTION ANALYSIS
Out of many Call and Put Option below are the top six open interest wise Call & Put strike price analysis.
Call Option Analysis
Maximum Call open interest (OI) of 42.08 lakh contracts was seen at the 11000-strike price followed by 11200 strike price which 32 Lakhs.Highest call writing was seen at a strike price of 11000, which was 3.94 lakh contracts. Highest call unwinding was seen at strike price of 11500, which was 5.25 Lakhs. Call option suggest 11000 will be next huddle.
Put Option Analysis
Maximum Put open interest of 41.58-lakh contract was seen at the 10500-strike price. Followed by 10000 level with 38.36 lakh open contracts. Highest put writing was seen at a strike price of 9500, which was 7.39 lakh contracts.Put option suggest 10700 will act as a resistance.
MAX PAIN CHART
Max pain, or the max pain price, is the strike price with the most open contract puts and calls - and the price at which the stock would cause financial losses for the largest number of option holders at expiration.
The term max pain stems from the Maximum Pain theory, which states that most traders who buy and hold options contracts until expiration will lose money. According to the theory, this is due to the tendency for the price of an underlyingstock to gravitate towards its "maximum pain strike price" - the price where the greatest number of options will expire worthless.
As per todays option data Max pain isat 10800 level.
TODAY FII/DII ACTIVITIES
Foreign institutional investors (FIIs) bought shares worth Rs 403.63crore while domestic institutional investors bought worth Rs 10.98 crore in the Indian equity market, as per provisional data available on the NSE.
Almost all sector closed flat today. Nifty Auto up by .29 %, Nifty Fin Service down by .56%, Nifty Pharma up .32%, Nifty Private bank down by .88%, Nifty Realty down by 0.27%.
ARBITRAGE OPPORTUNITY FOR TOMORROW
STOCK OPEN INTEREST BUILDUP
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