The index was opened on a positive note at 11,858 levels and witnessed a roller-coaster ride as market participants are acting over the baffle of U.S-China trade deal as both the economies are unable to provide any conviction over the closure of the deal. The index closed at 11,870.45 levels, with a gain of 0.25%. All indices were closed mixed out of which the metal stocks eased 1.89%.
Maximum Call open interest (OI) of 39.75 lakh contracts was seen at the 11900 strike price followed by 12000-strike price which 34.22 Lakhs. Highest call writing was seen at strike price of 11900, at which 14.88 lakh contracts traded. Call option suggest 11950 will be next hurdle. Maximum Put open interest of 32.53-lakh contract was seen at the 11800-Strike price followed by 11850 levels with 19.90 lakh open contracts. Highest put writing was seen at a strike price of 11800 at which total 16.11 lakh contracts traded. Put option suggest 11780 will act as a support.
Nifty50 futures is likely to remain in a range of 11,796.38 -11,998.62 levels as per the daily volatility of 0.85 levels. Formation of ‘Spinning Top’ candle stick pattern on daily scale, consistent daily volatility and ineffective writing in options are hinting for continuation of indecisiveness. Traders are advised to avoid executing long positions until the breach 11,900 levels.