Yesterday, the Indian benchmark was opened on a positive note at 12,151 levels and continued to move higher led by heavy additions in Put Writing at 12,200 and 12,150 levels respectively to an intraday high of 12,231.75 levels. However, the last session of the market got lackluster and index closed at 12,204.55 levels, with a gain of 0.80%. Overall market breadth was in favor of sellers as 726 shares are advanced and only 1069 shares are declines, and 358 shares remained unchanged. Among sectorial indices, except Nifty pharma, media and PSU banks, other indices ended higher.
Maximum Call open interest (OI) of 25.79 lakh contracts was seen at the 12300 strike price followed by a 12200-strike price which 22.89 Lakhs. Highest call writing was seen at the strike price of 12250, at which 5.93 lakh contracts traded. Call option suggests 12300 will be next hurdle. Maximum Put open interest of 27.89 -lakh contract was seen at the 12100-Strike price followed by 12200 levels with 27.55 lakh open contracts. Highest put writing was seen at a strike price of 12200 at which total 23.44 lakh contracts traded. Put option suggests 12100 will act as a support.
Today, the Indian bourses futures is likely to remain in a range of 12,109.48 -12,344.22 levels as per the daily volatility of 0.96 levels. Formation of ‘Common Gap’ candle stick pattern on daily scale, heavy additions in Put Writing at 12,200 and 12,150 levels and closing of Elder’s Force Index above zero level is likely to keep the momentum intact. A breach above 12,250 levels will activate more buyers to a high of 12,300 and 12,346 levels respectively.