On Friday, Nifty 50 was opened on same optimism at 11,984.90 levels but started moving downside led by heavy additions to Call Writing at 12,000 to a low of 11,957.30 levels but didn’t find any cushion and started getting weaker after slipping below ‘Head and Shoulder’ pattern formed on hourly scale. All indices closed in green except the media stocks that marginally erased 0.3%.
Maximum Call open interest (OI) of 26.09 lakh contracts was seen at the 12100 strike price followed by 12000-strike price which 25.16 Lakhs. Highest call writing was seen at strike price of 12000, at which 18.81 lakh contracts traded. Call option suggest 12000 will be next hurdle. Maximum Put open interest of 15.56-lakh contract was seen at the 11900-Strike price followed by 12000 levels with 12 lakh open contracts. Highest put writing was seen at a strike price of 11900 at which total 4.28 lakh contracts traded. Put option suggest 11800 will act as a support.
Indian Benchmark index is likely to remain in a range of 11,870.64 -12,028.36 levels as per the daily volatility of 0.66 levels. Formation oh Head and Shoulder pattern on lower time frame, slippage of Elder’s Force Index below zero levels and heavy additions to Call Writing at 12,000 levels is likely to keep the index on tenterhooks. A breach of 11,950 levels will trigger the formation of ‘Head and Shoulder’ and activate more buyers to a low of 11,900 and 11,850 levels respectively.