By Lokesh Sethia, SEBI Registered Research Analyst
Nifty opened on a gap up note today and entire day traded in a positive range. Nifty traded in a day range of 11648 to 11704 levels. In doing so, it moved 56 points. Nifty 50 closed at the level of 11690, 0.40% up whereas the Bank Nifty was up by 0.55% and closed at the level of 30104.On hourly chart Nifty formed “W” pattern. Nifty Vix was up 0.11% & closed at 21.02.
The top three performing stocks of today were PCJ up by 13.81%, INFIBEAM up by 10.18%, TATAMOTOR DVR up by 7.72%, whereas the lowest performing stocks were TV18BRDCST down by 5.57%, DCB BANK down by 3.55% and INFY down by 2.61%.
BUY NIFTY NEAR 11660-670 TARGET 11740/11760 SL-11620
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) of 17.69 lakh contracts was seen at the 11700-strike price followed by 11800-strike price which 14.02 Lakhs. Highest call writing was seen at strike price of 11700, which was 3.65 lakh contracts. Highest call unwinding was seen at strike price of 12000, which was 0.30 lakh contracts.
Call option suggest 11800 will be next huddle.
Put Option Analysis
Maximum Put open interest of 18.35-lakh contract was seen at the 11600-Strike price followed by 11500 level with 11.76 lakh open contracts. Highest put writing was seen at a strike price of 11650, which was 6.55 lakh contracts.
Put option suggest 11600 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 Stirike Price", which is essentially the large number of options that will expire without offering any returns.
As per todays option data Max pain is at 11600 level.
Foreign institutional investors (FIIs) bought shares worth ₹220 (Equity Cash+ Stock Future+ Index Future) crore while domestic institutional investors (DII) bought worth ₹ 581 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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