Yesterday, the Indian bourses kept the same sentiments and opened on a positive note at 8,451 levels, continued to move higher led by the ongoing spree of heavy short coverings and made an intraday high of 8,749.05 levels. However, some selling pressure was witnessed after the index tag the 20 (4-hours) Exponential Moving Average and closed at 8,641.45 levels, with a gain of 3.89%. On sectorial upfront, all indices were closed on a positive note out of which private banking stocks added 7.98%. Market Breadth was positive as 1,265 stocks were advanced while 545 were closed in the red.
Maximum Call open interest (OI) of 6.90 lakh contracts was seen at the 9000 strike price followed by a 8500-strike price which 4.68 lakhs. Highest call writing was seen at the strike price of 8500 at which 3.85 lakh contracts traded. Call option suggests 8800 will be next hurdle. Maximum Put open interest of 7.38 lakh contract was seen at the 8000-Strike price followed by 7000 levels with 6.92 lakh open contracts. Highest put writing was seen at a strike price of 8500 at which total 6.6 lakh contracts traded. Put option suggests 8400 will act as a support.
Today, Nifty50 futures is likely to remain in a range of 8,218.94-9,064.06 levels as per the daily volatility of 4.89 levels. Mean reversion from 20 (4-hours) Exponential Moving Average, weak sentiments due to lockdown and heavy additions in Call Writing at 9,000 levels is likely to keep the bears active. A slippage below the psychological support of 8,500 levels will activate more sellers to a low of 8,400 and 8,300 levels respectively.