Wednesday, November 4, 2020

NIFTY OUTLOOK & OPTION CALL PUT TIPS FOR 5 NOV 2020

The Sensex gained 355 points to settle at 40616 levels while Nifty ended at 11908, up 95 points. A close contest in the US election spiked volatility in the global market after yesterday’s strong rally. However, the Indian market was not as volatile as the outcome is not expected to change the country’s strategic outlook. The election results are unlikely on the election night and it could possibly take much longer for the final results to come out.

Nifty made a bullish candle, forming higher lows in the last three trading sessions. Now, it has to continue to hold above 11750- 11780 zones to witness an up-move towards 12000 then 12200, while on the downside, support is seen at 11650 then 11550 zones. On the options front, maximum Put OI is at 11000, followed by 11500 strikes while maximum Call OI is at 12000 followed by 12500 strikes. We have seen marginal Call writing in 12000 and 12500 strikes while Put writing is seen at 11900 then 11600 strikes. Options data suggests a wider trading range between 11600 to 12100 zones.

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Resistance: 11850, 11950, 12050

Support: 11750, 11650, 11550

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