F&O: Call unwinding raises hope for fresh upsurge

Nifty managed to settle above the 10 K mark at the 10,066 level, up by 52 points, while Sensex closed at the 32,325 level, up by 87 points on Friday.
 
Nifty opened with marginal loss of 5 points and dipped from the psychologically important mark of 10 K during the day to touch its intraday low of 9,988. However, in the closing hour, IOC, SBI, HDFC Bank and TCS contributed majorly to the market recovery. The Nifty 50 index has formed a bullish candle on the daily technical charts.
 
The Nifty futures of August series ended at premium of 45 points while the futures of September and October series ended at premium of 79 and 111 points respectively. On the options front, maximum open interest was seen at the strike price of 10,500 for call options and at 10,000 for put options. There was call unwinding seen at the strike prices of 10,200 followed by 10,100, signalling hopes for a fresh upsurge. Maximum put writing was seen at the strike prices of 10,000 followed by 10,100 and 9,900.
 
Going forward, immediate support for the index may be placed at its 10-DMA of 10,033 followed by 20-DMA of 9,946, while on the upside, it has to hold the 10,050 level to witness upward movement towards the 10,120 and 10,140 levels.