Nifty50 was opened on a positive note at 12,132.10 levels led by optimism in Indian economy after FM Nirmala Sitharaman denied for any fear of recession but started sensing resistance due to life-time higher levels. However, the index started trading in narrow range of 12,099.95-12-15820 levels in complete session but managed to close at life-time high levels. The index closed at 12,154.30 levels, with a gain of 0.44%. Almost all indices closed in green while auto sector eased 0.30%.
Maximum Call open interest (OI) of 9.78 lakh contracts was seen at the 12100 strike price followed by 12200-strike price which 8.8 Lakhs. Highest call writing was seen at strike price of 12200, at which 4.5 lakh contracts traded. Call option suggest 12200 will be next hurdle. Maximum Put open interest of 20-lakh contract was seen at the 12000-Strike price followed by 12100 levels with 13.45 lakh open contracts. Highest put writing was seen at a strike price of 12000 at which total 11.68 lakh contracts traded. Put option suggest 12040 will act as a support.
Nifty50 future is likely to remain in a range of 12,060.07-12,242.33 levels as per the daily volatility of 0.75 levels. Closing near the life-time highs, lower daily volatility and heavy Put Writing at 12,100 levels are hinting for continuation of bullish momentum. A breach of 12,150 levels will negate the formation of ‘Hanging Man’ candle stick pattern on daily scale and activate more buyers to a high of 12,200 and 12,250 levels respectively.