Stock picks of the day: Fresh Call writing at 11,500-11,550 could limit upside
Episode 1164, May 08, 2019, 02:00 AM
The Nifty50 index was dragged down sharply this week on the back of liquidation of long positions. From the derivative front, the recent development in data is pointing towards cautiousness and is indicating the probability of further profit booking.
Hefty call writing and put unwinding has been witnessed in recent trading sessions where call writers were seen active in 11600, 11550 & 11500 strikes indicating limited upside.
This clearly indicates a lack of buying interest and discomfort in the market. The levels of 11500 will remain crucial for this week as indicated by option open interest concentration.