Yesterday, the Indian Benchmark indices was opened on a gap up note at 7,848.30 levels and made an intraday high of 8,036.95 levels but investors utilize the pullback as a selling opportunity and initiate short positions that erased all the morning gains. However, the index managed to care 7,500 levels and closed at 7,801.05 levels, with a gain of 2.51%. On sectorial upfront, all indices were closed on a positive note out of which IT stocks added 6.13%. Market Breadth was negative as 799 stocks were advanced while 987 were closed in the red.
Maximum Call open interest (OI) of 16.92 lakh contracts was seen at the 9000 strike price followed by a 8500-strike price which 13.33 Lakhs. Highest call writing was seen at the strike price of 9000 at which 0.77 lakh contracts traded. Call option suggests 8500 will be next hurdle. Maximum Put open interest of 16.84 -lakh contract was seen at the 7000-Strike price followed by 7500 levels with 15.66 lakh open contracts. Highest put writing was seen at a strike price of 7500 at which total 5.54 lakh contracts traded. Put option suggests 7400 will act as a support.
Today, Nifty50 futures is likely to remain in a range of 7,518.75 -8,301.85 levels as per the daily volatility of 4.95 levels. Formation of ‘Doji Star’ candlestick pattern on daily scale, expansion in standard deviations and lockdown in the Indian economy is likely to keep the index on tenterhooks. A slippage below 7,500 levels will negate the formation of ‘Doji Star’ candlestick pattern and activate more sellers to a low of 7,400 and 7,300 levels respectively.