Yesterday, the index was opened on a flat to negative note at 12,219.55 levels and continued to move south led by heavy additions in Call Writing at 12,200 and 12,150 levels respectively. A dead cat bounce was witnessed in last hour of the trading session and the index closed at 12,174.65 levels with a loss of 0.22%. Overall market breadth was in favor of sellers as 790 shares are advanced and only 986 shares are declines, and 374 shares remained unchanged.
Maximum Call open interest (OI) of 15.10 lakh contracts was seen at the 12200 strike price followed by a 12400-strike price which 8.8 Lakh. Highest call writing was seen at the strike price of 12200, at which 11.13 lakh contracts traded. Call option suggests 12250 will be next hurdle. Maximum Put open interest of 10 -lakh contract was seen at the 12100-Strike price followed by 12000 levels with 9.75 lakh open contracts. Highest put writing was seen at a strike price of 11500 at which total 5.49 lakh contracts traded. Put option suggests 12100 will act as a support.
Today, Nifty50 futures is likely to remain in a range of 12,046.39 -12,279.91 levels as per the daily volatility of 0.96 levels. Mean reversion from 20-days Exponential Moving Average, heavy additions in Call Writing at 12,200 levels and continuous slippage in daily volatility is hinting for a lackluster move tomorrow. A breach of 12,150 levels will activate more buyers to a high of 12,200 and 12,250 levels respectively.