Last series, option writing clues indicated strong resistance at 7500. Subsequently this level was taken out but not strongly. Option writing later on indicated support at 7500.
Expiry was couple of points below 7500... this means option writers won whether they wrote 7500 call (at start of series) or 7500 put (after breakout above 7500).
What does JULY series point to?
We have an interesting situation at this point where nifty is around 7500 and option writing is most visible at 7000 put and 8000 call.
This means writers are expecting wild swings in the market yet do not expect markets to break 7000 or cross 8000.
Generally in past few years, writers have been spot on. Let us see how events unfold from here on.
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