By Lokesh Sethia, SEBI Registered Research Analyst
Nifty opened on positive note today. Throughout the day nifty traded in a narrow zone but last half hour nifty saw heavy selling presser and closed in Red. Nifty traded in a day range between11137 to 11287 levels. In doing so, it moved 150 points. Nifty 50 closed at the level of 11157, 0.58% down whereas the Bank Nifty was down by 0.74% and closed at the level of 28617.
On the daily chart, Nifty formed long red candle, which is bearish for the market. Nifty VIX wasup5.46% & closed at 28.61.
The top three performing stocks of today were SRF up by 6.75%, BAJAJ FINANCE up by 4.52, EICHERMOT up by 4.23%, whereas the lowest performing stocks were UNIONBANK down by 10.38%, DISHTV down by 9.59% and DHFL down by 9.05%.
BUY NIFTY NEAR 11100-11120, TARGET 11180/11220, SL-11050
SELL NIFTY NEAR 11250, TARGET 11150/11100, SL-11300
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) of33.78 lakh contracts were seen at the11300-strike price followed by 11400-strike price which 22 Lakhs. Highest call writing was seen at strike price of 11300, which was 16.41 lakh contracts.
Call option suggest 11300 will be next hurdle.
Put Option Analysis
Maximum Put open interest of 20.80-lakh contract was seen at the 11000 Strike price followed by 11100 levels with 17.23 lakh open contracts. Highest put unwinding was seen at a strike price of 11200, which was 2.78 lakh contracts.
Put option suggest 11050 will 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 the large number of options that will expire without offering any returns.
As per today’s option data Max pain is at 11200 levels.
Foreign institutional investors (FIIs) sold shares worth Rs 554.34 (Equity Cash+ Stock Future+ Index Future)crore while domestic institutional investors (DII) bought worth Rs 671.77 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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