F&O watch: Call writing at 9,000, 9,050 & 9,100 restricting Nifty's upside momentum
By Chandan Taparia
The Nifty50 index formed a Bearish Candle on Monday on the daily candlestick charts followed by Friday’s Doji, which indicates that the bulls are losing their grip. However, the index witnessed a small bounce from lower levels and finally closed with a loss of just around 60 points.
The index has immediate support near strike price 9,020 and below that it may see a decline towards the 8,950 level. On the upside, it needs to hold above 9,075 to witness an upward move towards strike prices 9,119 and 9,160.
On the options front, maximum Put open interest stood at strike prices 9,000 and 8,800, while maximum Call open interest stood strike price 9,200 followed by 9,100. There was significant Call writing at strike prices 9,100 and 9,050 while Put writing was intact at strike price 9,000.
Meaningful Call writing at strike prices 9,000, 9,050 and 9,100 is restricting the Nifty50’s upside momentum.
(Taparia is Technical & Derivative Analyst at Motilal Oswal Securities. Investors are advised to consult financial advisers before taking an investment calls based on these observations)
The Nifty50 index formed a Bearish Candle on Monday on the daily candlestick charts followed by Friday’s Doji, which indicates that the bulls are losing their grip. However, the index witnessed a small bounce from lower levels and finally closed with a loss of just around 60 points.
The index has immediate support near strike price 9,020 and below that it may see a decline towards the 8,950 level. On the upside, it needs to hold above 9,075 to witness an upward move towards strike prices 9,119 and 9,160.
On the options front, maximum Put open interest stood at strike prices 9,000 and 8,800, while maximum Call open interest stood strike price 9,200 followed by 9,100. There was significant Call writing at strike prices 9,100 and 9,050 while Put writing was intact at strike price 9,000.
Meaningful Call writing at strike prices 9,000, 9,050 and 9,100 is restricting the Nifty50’s upside momentum.
(Taparia is Technical & Derivative Analyst at Motilal Oswal Securities. Investors are advised to consult financial advisers before taking an investment calls based on these observations)
