By Lokesh Sethia SEBI Register Research Analyst
BUY NIFTY 10830 TARGET 10900/10950 SL-10760
From past three trading session, Nifty50 opens high but not able to sustain and closed in red. On weekly chart nifty, form DOJI pattern which indicates uncertainty. However, the index has managed to hold above its rising trend line support area and also its 200-DEMA, which is around 10,700- levels. For the upswing to resume, Nifty has to surpass its immediate peak of 10,925-10,950levels.
Bank Nifty to has taken a breather in the past two days after finding resistance at the upper trend line of the rising wedge pattern on the daily chart. The weekly chart also indicates that the index has formed a Doji pattern, which indicates uncertainty. Crucial support for Bank Nifty is currently seen around 27,300-levels.
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 46.92 lakh contracts was seen at the 11000-strike price followed by 11200 strike price which 34.34 Lakhs. Highest call writing was seen at a strike price of 11000, which was 6 lakh contracts. Highest call unwinding was seen at a strike price of 11500, which was 1 Lakhs. Call option suggests 11000 will be next huddle.
Put Option Analysis
Maximum Put open interest of 38.90-lakh contract was seen at the 10500-strike price. Followed by 10000 level with 37.97 lakh open contracts. Highest put writing was seen at a strike price of 10000, which was 1.19 lakh contracts. And highest Put unwinding was seen at strike price of 10500, which was 2.68 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 underlying stock to gravitate towards its "maximum pain strike price" - the price where the greatest number of options will expire worthlessly.
As per today's option data, Max pain is at 10800 level.
TODAY FII/DII ACTIVITIES
Foreign institutional investors (FIIs) sold worth Rs 1021crore while domestic institutional investors bought worth Rs 123.17 crore in the Indian equity market, as per provisional data available on the NSE.
Almost all sector closed flat today. Nifty Auto down by .79 %, Nifty Pharma down .36%, Nifty Private bank down by .28%, Nifty Realty down by 1.35%, Nifty PSU Bank down by .90%, Nifty FMCG up by .61%.
ARBITRAGE OPPORTUNITY FOR TOMORROW
STOCK OPEN INTEREST BUILDUP
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