Yesterday, the 50-stocks bundle was opened on a negative note at 7,735.15 levels and continued to trade lackluster in a narrow range of 7,714.75-7,980.35 levels. However, a breach of 8,050 levels triggered the formation of ‘Doji star’ candlestick pattern and activated more buyers to a high of 8,374.65 levels. On sectorial upfront, all indices were closed on a positive note out of which financial services stocks added 9.32%. Market Breadth was positive as 1,068 stocks were advanced while 717 were closed in the red.
Maximum Call open interest (OI) of 20.18 lakh contracts was seen at the 9000 strike price followed by a 8500-strike price which 14.32 Lakhs. Highest call writing was seen at the strike price of 8800 at which 3.42 lakh contracts traded. Call option suggests 8800 will be next hurdle. Maximum Put open interest of 22.18 lakh contract was seen at the 7000-Strike price followed by 7500 levels with 15.32 lakh open contracts. Highest put writing was seen at a strike price of 8000 at which total 4.56 lakh contracts traded. Put option suggests 8000 will act as a support.
Today, Nifty50 futures is likely to remain in a range of 7,967.98 -8,741.62 levels as per the daily volatility of 4.63 levels. Bullish Divergence on hourly scale, slippage in daily volatility and no discovery of drug to combat Coronavirus is likely to keep the index on tenterhooks. A breach above 8,500 levels will activate more buyers to a high of 8,600 and 8,700 levels respectively.