Markets gave a bounce yesterday after testing the lower Bollinger band.
The moment markets reach the bottom of the band, the accumulation in 4900 puts has increased and the OI stands at 60 Lakhs. 5000 calls also added more to the OI and it now stands at 71 Lakhs.
This gives an indication that this entire month seems to be that of range play and more of arbitrage is being done by selling calls and puts and moving the markets in a tight range and letting the time value erode in the options.
Given this scenario, it is highly unlikely that the range of 4940 will be broken and even if that happens there is a higher possibility of Nifty to rise back into the range.
Resistance levels : 4996, 5015
Support levels : 4970, 4957
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