The index opened on a gap up note at 11,661.95 led by optimism from global markets and continued to witness bearish momentum as market veterans started discounting the neck-o-neck competition in the parties. Moreover, the standard deviation got heated after the state favored Department of telecom over telecom players and slapped a leakage of Rs.92,000 crores that activated more sellers to a low of 11,534.65 levels. The index closed at 11,582.6 levels, with a marginal loss of 0.19%.
Maximum Call open interest (OI) of 35.99 lakh contracts was seen at the 11700-strike price followed by 11600-strike price which 35.89 Lakhs. Highest call writing was seen at strike price of 11600, which was 21.59 lakh contracts. Call option suggest 11680 will be next hurdle.
Maximum Put open interest of 24.22-lakh contract was seen at the 11500-Strike price followed by 11550 level with 16.31 lakh open contracts. Highest put writing was seen at a strike price of 11500, which was 8.19 lakh contracts. Highest put unwinding was seen at strike price of 11600, which was 9.70 lakh contracts. Put option suggest 11500 will act as a support.
On Friday, Nifty50 futures is likely to remain in a range of 11,479.63 -11,744.37 levels as per the daily volatility of 1.14 levels. Formation of ‘Bearish Engulfing’ candle stick pattern on daily scale, heavy additions in Call writing at 11,600 and bearish crossover from Stochastic oscillator is likely to keep bears alive. A slippage below the psychological support of 11,550 will trigger the formation of ‘Bearish Engulfing’ and activate more sellers to an intraday low of 11,500 and 11,450 levels respectively.