On Friday Nifty didn’t able to hold 11900 mark and closed below psychological level. It formed Gravestone doji candle in the daily chart. Out of 13 sectors 7 sectors closed in green and 6 sectors closed in red. Equity Market closed on almost flat note due to no sign of major growth seen in US Sino trade talks. In last week Sensex and Nifty both closed almost flat.
Maximum Call open interest (OI) of 20.64 lakh contracts was seen at the 12000 strike price followed by 11900-strike price which 12.46 Lakhs. Highest call writing was seen at strike price of 12000, at which 10.77 lakh contracts traded. Call option suggest 12000 will be next hurdle. Maximum Put open interest of 15.82-lakh contract was seen at the 11800-Strike price followed by 11900 levels with 14 lakh open contracts. Highest put writing was seen at a strike price of 11900 at which total 6.18 lakh contracts traded. Put option suggest 11780 will act as a support.
Nifty is likely to trade in the range of 11750 to 12050. At the time of closing India Vix was at 15.03 levels. Gravestone Doji candle indicates indecisiveness in the market. Option data suggests 11780 and 12050 can work as strong support and resistance level respectively. As per the charts near support in the market can be around 11820 levels and resistance can be 11990 levels.