traded with bullish mode on the first day of October series on firm global cues. Volatility Index, India VIX, dropped 12.06 per cent and closed at 20.6750, which shows some relief to bulls as volatility is likely to come down. Nifty managed to close at 11,050.30, adding 244.80 points. IT, Auto, and private banks along with financial stocks traded with positive sentiments whereas no index closed in the red. Nifty bank closed at 20,982.35, adding 525.50 points from the previous day’s closing.
As per weekly option data, handful of put writing on lower strikes ranging from 10,800 to 11,000 is witnessed, which shows Nifty would face firm support in the sub 11,000 zone. The level of 10,900 might act as strong support as maximum put OI is placed here. We can witness short covering move along with addition of fresh position only if somehow Nifty sustains level of 11,200. Therefore, traders should try to create long position keeping a close eye on 11,000.