Yesterday, Indian benchmark opened on a flat note at 11,911.50 levels and continued to sense weakness after slipping below 11,870 levels that triggered the formation of 'Hanging man' candle stick formed in previous trading session and activated more sellers to an intraday low of 11,850 levels. However, the overturned oscillators were capitalized by the market participants and index rebound above 11,950 levels. The index was closed at 11,966.05 levels. Almost all indices closed in green except the PSU banks that erased 0.76%.
Maximum Call open interest (OI) of 30.38 lakh contracts was seen at the 12000-strike price followed by 12100-strike price which 18.36 Lakhs. Highest call writing was seen at strike price of 12050, which was 8.9 lakh contracts. Call option suggest 12050 will be next hurdle. Maximum Put open interest of 29.16-lakh contract was seen at the 11900-Strike price followed by 11800 level with 25.35 lakh open contracts. Highest put writing was seen at a strike price of 11950, which was 10.68 lakh contracts. Put option suggest 11850 will act as a support.
Nifty50 futures is likely to remain in a range of 11,894.87 -12,113.33 levels as per the daily volatility of 0.91 levels. Kiss of 12,000 levels, slippage in daily volatility, heavy Put writing at 11,950 levels and Call Unwinding at 12,000 is signaling that the continuation of bullish momentum cannot be ruled out. A breach of 12,000 levels will activate more buyers to a high of 12,050 and 12,100 levels.