Nifty was opened on a positive note led by effective buying interest as the index was closed near 12,000 levels on Friday but weak numbers in GDP growth of the Indian economy factored in and index started moving south to an intraday low of 12,023.7 levels. However, the persisting buying interest at lower levels activated bulls and index managed to close near 12,048 levels with a marginal loss of 0.07%. Almost all indices closed in red while metal stocks gained 0.27%.
Maximum Call open interest (OI) of 30.91 lakh contracts was seen at the 12100 strike price followed by 12200-strike price which 20.63 Lakhs. Highest call writing was seen at strike price of 12100, at which 9.16 lakh contracts traded. Call option suggest 12100 will be next hurdle. Maximum Put open interest of 27.77-lakh contract was seen at the 12000-Strike price followed by 11900 levels with 15 lakh open contracts. Highest put writing was seen at a strike price of 12000 at which total 7.22 lakh contracts traded. Put option suggest 12000 will act as a support.
Nifty50 future is likely to remain in a range of 12,006.37-12,175.63 levels as per the daily volatility of 0.70 levels. Formation of ‘Bearish Belt Hold’ candle stick pattern on daily scale, continuous slippage in daily volatility and heavy Call Writing at 12,100 levels is likely to keep the index on edge. A breach of 12,130 levels will negate the formation of ‘Bearish Belt Hold’ candle stick pattern and activate more buyers to a high of 12,200 levels.