nifty: F&O: Put writers take control of market, may lift Nifty even higher

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The Nifty50 index opened in the positive above the immediate hurdle of 9,620 and headed towards the 9,680 level in Monday’s session. It has negated the formation of lower tops and lower bottoms and seen a breakout on the upside from its falling channel on the hourly chart. Now, it has to continue to hold above 9,620 to witness an upward move towards its lifetime high of 9,709 and 9,750 marks, while on the downside, supports are seen at 9,580 and 9,550 levels. On the options front, maximum Put open interest was seen at strike prices 9,500 and 9,600 while maximum Call open interest stood at strike prices 9,700 and 9,800. We have seen significant Put writing at strike prices 9,700 and 9,600, while major Call unwinding was seen at strike prices 9,600, 9,650 and 9,700. Fresh Put writing and Call unwinding at at-the-money strikes suggests Put writers have taken the market in their grips and follow-up activity may take it to a new lifetime high. India VIX fell 2.68 per cent to 10.62 and lower volatility is supporting the overall bullish undertone of the market. opened in the positive and made a new lifetime high of 23,806. It has managed to hold above 23,500 and surpassed the previous lifetime high of 23,708. It has to hold above 23,500 to extend its upward move towards 24,000 level, while on the downside, immediate support is seen at the 23,333 mark. while shorts were seen on select pharma and oil marketing counters.