In the last trading session Indian benchmark was opened above the mounting resistance of 12,000 levels but failed to sustain led by heavy Call Writing at those levels and started drifting lower to an intraday low near 11,950 levels. However, the index bounced back as investors deployed the opportunity of making long positions on oversold oscillators to a high of 12,019 levels. All sectors were closed in green while Nifty PSU Banks erased 1.51%.
Maximum Call open interest (OI) of 33.31 lakh contracts was seen at the 12050-strike price followed by 12100-strike price which 31.76 Lakhs. Highest call writing was seen at strike price of 12050, which was 19.64 lakh contracts. Call option suggest 12100 will be next hurdle. Maximum Put open interest of 31.56-lakh contract was seen at the 11900-Strike price followed by 11900 level with 30.85 lakh open contracts. Highest put writing was seen at a strike price of 12000, which was 17.81 lakh contracts. Put option suggest 11900 will act as a support.
Nifty50 futures is likely to remain in a range of 11,945.8 -12,165.2 levels as per the daily volatility of 0.91 levels. Formation of ‘Dragonfly Doji’ candle stick pattern on daily scale, heavy Put Writing at 12,000 levels and closing above 12,000 levels is hinting for a strong momentum tomorrow. A breach of psychological resistance at 12,021 levels will trigger the formation of ‘Dragonfly Doji’ candle stick pattern and activate more buyers to a high of 12,061 and 12,100 levels respectively.