Nifty has been hovering in a tight range for more than a week with strong resistance around 5200 levels and has been taking support everytime it nears 5000 levels.
It looks like bears can take control today and push nifty below the key level of 5000, and can even take nifty to test 4906 levels for the day. Yesterday was a change in sentiment where towards the end of the day, the implied volatility of puts were less than the calls and Nifty went into heavy premium towards the end.
The highest OI in any contract till now is only around 75 lakhs and it has not touched the crore mark for any strike. Yesterday again there was a huge increase in 4800 puts OI.
Resistance levels : 5079, 5112, 5144
Support levels : 5036, 4946, 4906