Market traded with positive sentiments on strong global cues along with expectation of announcement of scrap policy on automobiles. Nifty closed at 12,100.70 adding 63 points. PSU banks, automobile, and metal stocks traded with positive sentiments throughout the day and gained the most among indices. Nifty bank closed at 31,876 adding 157.70 points to the previous day’s closing and closed at record all-time high.
As per weekly option data, handful of Put writing on lower strikes ranging from 12,000 to 12,100 which shows Nifty is witnessing good support in sub-12,050 zones. Call writing on higher strikes ranging of 12,150 to 12,200 shows market likely to face resistance at higher levels. Traders should try to buy any dip at higher levels as market has maximum put OI at 12,000 which will act as major support levels for the weekly expiry, but 12,200 will act as resistance as maximum OI for the calls stands here. However, if Nifty is able to breach level of 12,200 it will lead to short covering move up to 12,270. Therefore, traders should buy every dip keeping close eye on 12,000.