After attempting a breakout in the previous session, the stock market consolidated before making further moves. The day started off steady on expected lines. The Nifty 50 index marked its day’s high in opening deals, after which it slipped into negative territory. The entire session was spent where the index continued to move on either side of its previous close. It took no directional bias throughout the day.
The headline index ended flat with a fall of 7.95 points after spending the entire session on one side and in a narrow range.
While the markets did nothing and spent the day in a directionless session, some notable developments were reflected in the options data. As we move towards the last day of weekly options expiration, it is important to keep these statistics in mind. The 15,600-strike price saw high call writing of 1.9 million shares by the end of the day. Open interest saw an increase of 1.9 million. However, at one point during the session, it showed an increase of 2.9 million, surpassing even the 16,000 level in terms of maximum call open interest.
The 16,000 strike still has a maximum call open interest of 5.2 million, followed by 15,600 with a call open interest of 4.2 million.
The above data means that Nifty has strong resistance at 15,600; In a single breath, if it takes 15,600 it has the potential to test a higher level. The behavior of the index against 15,600 will be important to watch till the expiry of the current weekly options. The 15,600 and 15,685 levels will act as resistance; Support will come at 15,500 and 15,415 levels.