It was an interesting day in the markets and the sell-off today would have caught many a person off-guard.
I was very interested to see what the Option Open Interest table would show at the end of the day, so I had a look at it. Here it is…
The data shows accumulation by put writers of about 33% at 4800, bringing the open Interest there to 6.96 million shares.The immediate posiibility is that of a strong support at current prices, but one must not discount the possibility that should prices hold below 4785, it will bring a strong swift move to the 200 DMA currently around 4600 levels.
The largest call OI base is at 5000 strike with 5.18 million shares.This will be a big resistence for the market to overcome should the levels around 4940+ be seen again.
The range of 4800-5000 has remained the same despite the sell-off today.
One should be playing for the bounce tomorrow.