Hi,
Today, First Day of the DEC series, Nifty Opened around 4730 and slipped to 4700 level in the morning. Found support at 4700 level and raced to 4765 by 10.30. oscillated between 4730 and 4750 till 2 clock. Selling pressure brought Nifty briefly to below 4700 around 4695.Nifty managed to close around 4705 in the end.
Here is Nifty Option Chain of 25th Nov 11(Fri).
I have updated the file with DEC series calendar. Dec is a long series and has only one holiday on 06th Dec, Tue. Notice the OI Addition on 25th Nov 11(Fri) at 4700 Put , about 11.5 lakh and at 4800 Call , about 12 lakh. Considering this series is a long series and assuming these option writers are strong, Nifty may bounce around in the 100 point range for some sessions while option writers may enjoy the reduction in premium due to time decay . Of course ,very positive or negative news will tilt the scales. After 4700 Put ,highest put OI Build up is at 4500 Put . looks like Option Traders are not considering 4600 as big support , if 4700 is decisively broken. Remember in the last series, Nifty broke below 4700 to 4650 levels twice.
Happy Trading.
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