So the put writing starts to happen at higher strike prices. Puts right from 4000 to 4300 levels, with 4000 puts adding OI big time at 21lac open positions in one go, so 4000-4100 will provide fierce support. Hence certainly 4000 put should be avoided. Interestingly call writing has also picked up with calls from 4300 to higher levels adding OI in significant quantities. Hence it seems that the expiry range will be anywhere between 400 to 4300 and this range is expected to narrow down in coming 2-3 days.
One more important thing to observe in options is that even as nifty went down by 48 points there was a actual decrease in value of the puts, this is due to decrease in the IMPLIED VOLATILITY in options so it is better to stay out of options till expiry.
On the candles yesterday nifty gave a almost perfect doji, doji by no means are reversal signals, the upper shadow of the doji at 4550 will act as resistance an lower shadow at 4180 will act as support.
On fibo 50%retracement from top to bottom comes in the range of 4319 so this level is important.
However rather than concentrate on nifty one should/could trade in midcap which are showing good movements.
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