Nifty50 was opened on a positive note at 12,067.65 levels but started perceiving selling pressure led by formation of effective Call Writing at the psychological support of 12,000 levels and made an intraday low of 11.956.40 levels. However, the index bounced back in last hour of the market but failed to close above the psychological resistance of 12,000 levels. On sectorial upfront, almost all indices closed in red out of which PSU Banks stocks eased 2.86%.
Maximum Call open interest (OI) of 35.63 lakh contracts was seen at the 12100 strike price followed by 12200-strike price which 21.75 Lakhs. Highest call writing was seen at strike price of 12000, at which 11.50 lakh contracts traded. Call option suggest 12070 will be next hurdle. Maximum Put open interest of 23.32-lakh contract was seen at the 12000-Strike price followed by 11900 levels with 17.75 lakh open contracts. Highest put writing was seen at a strike price of 11950 at which total 4.69 lakh contracts traded. Put option suggest 11950 will act as a support.
Nifty50 futures is likely to remain in a range of 11,966.35 -12,135.05 levels as per the daily volatility of 0.70 levels. Formation of three ‘Bearish Belt Hold’ candle stick pattern on daily scale, heavy additions in Call Writing at 12,000 levels is hinting that market participants are making tough for index to push life-time highs. A breach of 12,100 levels will negate the formation of ‘Bearish Belt Hold’ and activate more buyers to a high of 12,150 levels.