Nifty index opened negative but managed to hold above 8,040 zones and bounced back towards 8,120 levels. It crossed previous day’s high of 8,100 zones and partially filled the down gap of an event day. It was moving in between negative and positive territory for most part of the day then finally closed flattish below 8,100 mark.
Now it has to cross and hold above 8,120 zones to witness a positive move towards 8,180 then 8,242 levels while holding below 8,050-8,040 zones may attract the fresh selling pressure towards 7,980 zones.
INDIA VIX close flat to positive near to 18.80 levels.
Looking at the option data, maximum Put OI is at 8,000 followed by 8,100 strike while maximum Call OI is at 8,400 followed by 8,300 strikes. We have seen fresh and aggressive Call writing at 8,100 and 8,200 strikes which may keep the upside limited while fresh Put writing at 8,000 and 8,100 strike would keep the downside limited. So overall option data indicates a volatile swing in between broader trading range between 8040 to 8180 zones for next coming sessions.
(The author is derivatives analyst, equity research at Anand Rathi Financial Services)