By Lokesh Sethia, SEBI Registered Research Analyst
Nifty opened flat today and entire day traded in a narrow zone. Nifty traded in a day range of 11564 to 11645 levels. In doing so, it moved 81 points. Nifty 50 closed at the level of 11575, 0.16% down whereas the Bank Nifty was down by 0.70% and closed at the level of 29478.
On daily chart Nifty formed “Bearish small candle”which is negative for the market. Nifty Vix was up 2.31% & closed at 24.60.
The top three performing stocks of today were SUZLON up by 8.82%, JETAIRWAYS up by 8.31%, RELCAPITAL up by 8.20%, whereas the lowest performing stocks were INFIBEAM down by 8.31%, SAIL down by 3.62% and MARUTI down by 3.55%.
BUY NIFTY NEAR 11550 TARGET 11620/11650 SL-1148
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 53.62 lakh contracts was seen at the 11700-strike price followed by 12000-strike price which 37.35 Lakhs. Highest call writing was seen at strike price of 11700, which was 12 lakh contracts. Highest call unwinding was seen at strike price of 12000, which was 4.14 lakh contracts.
Call option suggest 11700 will be next huddle.
Put Option Analysis
Maximum Put open interest of 28.77-lakh contract was seen at the 11500-Strike price followed by 11000 level with 25.45 lakh open contracts. Highest put writing was seen at a strike price of 11500, which was 4.24 lakh contracts. Highest put unwinding was seen at a strike price of 11000, which was 1.15 lakh contracts.
Put option suggest 11500 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 ₹1749 (Equity Cash+ Stock Future+ Index Future) crore while domestic institutional investors (DII) bought worth ₹ 198 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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