F&O Manual | Nifty trades flat as call and put writers tussle at 20,000 strike

Indian equity markets opened marginally down in line with mixed trading in Asian markets on September 13 and lower closing in the US markets. Except FMCG and oil and gas, all sectoral indices traded in the red in early hours of Wednesday.

At 10am, the Sensex was down 26.93 points or 0.04 percent at 67,194.20, and the Nifty was down 8.90 points or 0.04 percent at 19,984.30. About 1,213 shares advanced, 1,564 shares declined, and 103 remained unchanged.

Bars reflect changes in open interest (OI) during the day. The red bars show call option OI and the green put option OI

A tussle between call and put writers is seen at the 20,000 open interest level. ” The Nifty index would have the near-term support zone at around 19,820-19,840 levels with the sentiment maintained with a cautious approach. The support for the day is seen at 19,850 levels while the resistance is seen at 20,150 levels,” Prabhudas Lilladher said.

Samco Securities stated that Bank Nifty is consolidating in the 45,400-45,600 points range. A decisive break above the 45,800 level appears poised to propel Bank Nifty towards the 46,350 level, marking the next significant resistance point. “The decisive break above the 45,800 level will happen once short positions are covered from the maximum call open interest strike of 45,500 in Bank Nifty, ” the brokerage firm said.

Follow our live blog for all market action

Among individual stocks, Granules, Glenmark and Auropharma saw a bullish setup, while ABB, REC Ltd and IDFC First Bank saw a bearish build-up.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.