Nifty ended January series in the red amid risk-off sentiment due to the outbreak of coronavirus.
The market benchmark finished below 12,100 level on the expiry day and formed a bearish belt hold pattern.
"Nifty appears to be finding some psychological support around the 12k mark. If it breaches this level in the next trading session, the index could fall further to 11,900 levels," said Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in
"In the final session before Budget there may not be decent upsides on an intraday basis as traders may adopt cautious approach but technically 12,170 shall remain a critical hurdle. For the day traders are advised to remain neutral on the long side whereas intraday shorting can be considered if Nifty trades below 11,990 for a target of 11,930 with a stop above intraday’s high," he added.
India VIX moved up by 1.80 percent to 16.79 levels. However, volatility will only get more prominent ahead of the upcoming Union Budget 2020.
Maximum Put OI is at 12000 followed by 11500 strike while Maximum Call OI is at 12200 followed by 12500 strike.
Call writing is seen at 12500 then 12300 strike while Put writing is seen at 12000 and 11800 strike. Option data indicates a wider swing in the market ahead of the Budget.