Yesterday, the Indian benchmark was opened on a flat note at 8,889.15 levels and started moving higher to an intraday high near the psychological resistance of 9,000 levels. A back and forth movement was witnessed in most of the trading session. However, things got into favor of bulls after Finance Ministry announced that the government is going to launch a new Special Liquidity Scheme to facilitate non-banking financial companies (NBFCs) and housing finance companies (HFCs) for improving their liquidity position that pushed the index higher and closed at 9,066.55, with a gain of 2.11%. On sectoral upfront, indices were closed on a positive note out of which the pharma stocks added 4.10%.
Maximum Call open interest (OI) of 16.26 lakh contracts was seen at the 9300 strike price followed by a 9100-strike price which 16.25 lakh. Highest call writing was seen at the strike price of 9250 at which 2.49 lakh contracts traded. Call option suggests 9200 will be next hurdle. Maximum Put open interest of 18.34 lakh contract was seen at the 8800-Strike price followed by 8900 levels with 17.11 lakh open contracts. Highest put writing was seen at a strike price of 9000 at which total 9.37 lakh contracts traded. Put option suggests 8900 will act as a support.
Today, Nifty50 futures is likely to remain in a range of 8,827.96 -9,344.04 levels as per the daily volatility of 2.84 levels. Formation of small ‘Bullish Marubozu’ candlestick pattern on daily scale, heavy Call Writing and Put Unwinding at 9,000 levels, positive announcements from FM Sitharaman in favor of NBFCs and HFCs is likely to keep the bulls active. A breach above 9,100 levels will trigger the formation of ‘Bullish Marubozu’ candlestick pattern and activate more buyers to a high of 9,180 and 9,270 levels respectively.