By Lokesh Sethia, SEBI Registered Research Analyst
Nifty open higher on Friday and entire day trade in a narrow range. Nifty traded in a day range of 11578 to 11657 levels. In doing so, it moved 78 points. Nifty 50 closed at the level of 11643, 0.40% up whereas the Bank Nifty was up by 0.51% and closed at the level of 29938.
On the thirty-minute chart, Nifty formed triple bottom near 11550 level and bounce back. Its suggest 11530-11560 will act as a support zone for nifty. Nifty Vix was up 0.19% & closed at 20.99.
The top three performing stocks of today were PCJ up by 18.39%, TV18BRDCST up by 9.63%, SUZLON up by 8.96%, whereas the lowest performing stocks were DHFL down by 3.33%, CG POWER down by 2.51%and IDEA down by 2.15%.
INTRADAY CALL: BUY NIFTY50 NEAR 11620, TARGET 11680/11720, SL-11550
NIFTY OPTION ANALYSIS
Out of all 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) of14.04 lakh contracts were seen at the 11700-strike price followed by a 12000-strike price which 9.4 Lakhs. Highest call writing was seen at a strike price of 11750, which were 2.64lakh contracts. Highest call unwinding was seen at a strike price of 10700, which were 1.75 lakh contracts.
Call option suggests 11800 will be next huddle.
Put Option Analysis
Maximum Put open interest of 15.53-lakh contract was seen at the 11600-Strike price followed by 11500 level with 10 lakh open contracts. Highest put writing was seen at a strike price of 11600, which was 8.11 lakh contracts.
Put option suggests 11550will act as a support.
MAX PAIN CHART
Max pain price is essentially the strike price having the most open contract puts and calls. It means the price that will lead to maximum financial losses for the option holders during expiry.
The term max pain originates from the Maximum Pain theory. It means that a large percentage of the traders would lose a considerable amount of money if they buy and hold the options contracts until expiration.
According to the Maximum Pain theory, this crops up because the price of the underlying stock tends to shift towards its "Maximum Pain Strike Price", which is essentially a large number of options that will expire without offering any returns.
As per today’s options data, Max pain is at 11600 levels.
Foreign institutional investors (FIIs) bought shares worth Rs. 47.17 (Equity Cash+ Stock Future+ Index Future) crore while domestic institutional investors (DII) sold worth Rs. 15.99 crore in the Indian equity market, as per provisional data available on the NSE.
ARBITRAGE OPPORTUNITY FOR TOMORROW
STOCK OPEN INTEREST BUILDUP
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