By Lokesh Sethia, SEBI Registered Research Analyst
As expected Nifty cooled down today after hitting fresh all-time high.Nifty traded in a day range between 11682 to 11883 levels. In doing so, it moved 200 points. Nifty 50 closed at the level of 11709, 1.01% down whereas the Bank Nifty was down by 1.47% and closed at the level of 30308.
Nifty on daily chart formed long green blackcandle, which isnegative for the market. India VIX up by 9.24% & closed at 25.86. Nifty VIX suggest market will be volatile in this week.
The top three performing stocks of today were JETAIRWAYS up by 12.94%, JUSTDIAL up by6.48, DHFL up by 4.53%, whereas the lowest performing stocks were TATA MOTORS down by 6.60%, TATAMTRDVR down by 6.08%and DISHTV down by 5.72%.
BUY NIFTY NEAR11700,TARGET 11800/11850, SL-11600
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) of14.72 lakh contracts was seen at the12000-strike price followed by 12500-strike price which 11.33 Lakhs.Highest call writingwas seenat strike price of 12200, which was 4.84 lakh contracts.
Call option suggest 12000 will be next hurdle.
Put Option Analysis
Maximum Put open interest of 8.9-lakh contract was seen at the 11500-Strike price followed by 11000 level with 8 lakh open contracts.Highest put writingwas seen at a strike price of 10500, which was 2.82 lakh contracts.
Put option suggest 11500will 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 11700 levels.
Foreign institutional investors (FIIs) bought shares worth Rs 214.95(Equity Cash+ Stock Future+ Index Future) crore while domestic institutional investors (DII) sold worth Rs 1090.32 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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