NIFTY & BANK NIFTY VIEW FOR 04/02/2016

LAST 2 SERIES NIFTY DID NOT CROSSED 8000 CONVINCINGLY AND THEREAFTER WE HAVE WITNESSED FALL BELOW 7300 TOO...!!!

EARLIER 8000 ACTED AS STRONG SUPPORT AND NOW IT IS ACTING AS STRONG RESISTANCE AS WE ALL KNOW THAT PAST SUPPORT BECOME RESISTANCE IF PRICES TRADES/STAY BELOW THAT LEVEL.

INFACT EVEN BEFORE START OF THIS SERIES IT WAS VERY MUCH DISCOUNTED THAT 7XXX LEVELS SHALL NOT BE CROSSED EASILY...!!!

WE HAVE ALREADY SAID THAT SOMETHING BIG HAS ALREADY TAKEN PLACE (IN SIMPLE WORDS POSITIONS ALREADY TAKEN IN OPTIONS) AND TO PROTECT INTEREST OF OUR TECHNICAL ANALYSIS WE CANNOT DISCLOSE IT.

NOW IF WE TALK ABOUT OUR LAST POST THEN YES OUR VIEW WENT WRONG DRASTICALLY...!!! BUT IT IS TIME TO MOVE FORWARD AND LOOK TO WHAT CAN BE NEXT MOVE IN NIFTY & BANK NIFTY.

ANYWAY LETS TRY TO MOVE FORWARD TO OPTION CHAIN ANALYSIS.

Except 7300 & 7100 PE all major nearby ITM, ATM  & OTM undergone liquidation (from 7000 to 8200) and some addition were seen in these 2 PE. 

Looking at CE front same story is in continuation and all near by ATM & OTM CE have undergone additions givning some sign of small bounce back. 

If we talk about Bank Nifty then again for second consecutive session Bank Nifty closed below highest PE OI. But 14000 PE OI too has got highest OI additions amongst OTM PE. 

Highest OI tag for Nifty is with 7400 PE & 7600 CE. (February series) but stiff competition between 7200 & 7400 PE for highest OI tag in their category. 


Highest OI tag for Bank Nifty is with 15000 PE & 16000 CE. (February series) 

NOW LETS TALK ABOUT RESISTANCE & SUPPORT LEVELS FOR NIFTY:-

RESISTANCE LEVELS:- 7414 & 7520
SUPPORT LEVELS:- 7348 & 7241

NOW LETS TALK ABOUT RESISTANCE & SUPPORT LEVELS FOR BANK NIFTY:-

RESISTANCE LEVELS:- 14962, 15092, 15300 & 15638 
SUPPORT LEVELS:-  14754 & 14710

NOW LETS SEE SOME IMPORTANT NIFTY RATIO

PE RATIO FOR NIFTY STANDS AT 19.65
PE RATIO FOR BANK NIFTY STANDS AT 15.55
(As on 02/02/2016)

NIFTY PCR ON BASIS OF OI IS 0.96

BANK NIFTY PCR ON BASIS OF OI IS 0.76

FINAL CONCLUSION

Both Nifty & Bank Nifty closed below highest OI PE. This give indication of clear bear market but changes in 14500 PE & 7200 PE in coming days shall decide road ahead for bulls. In simple terms we shall be able to say only that stay away from any overnight position in Nifty & Bank Nifty. As far as we see & understand Spot Nifty may not cross 7600 in this series and for Bank Nifty this levels comes at 16000.

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TECHNICAL ANALYSIS WORKSHOP

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PLEASE NOTE THESE MOVES ARE AS PER CHARTS AND OPTIONS CHAIN WHICH MAY REVERSE ANYTIME. THIS POST IS FOR EDUCATION PURPOSE ONLY AND NOT TO BE CONSIDERED AS BUYING OR SELLING RECOMMENDATION. WE ARE NOT SEBI REGISTERED RESEARCH ANALYST. WE ARE NOT RESPONSIBLE FOR ANY PROFIT OR LOSS FOR ANY TRADES EXECUTED ON BASIS OF THIS POST. WHILE UTMOST CARE HAS BEEN TAKEN WHILE ANALYSING CHARTS & OPTIONS DATA BUT IF INCASE THERE IS ANY HUMAN ERROR WE ARE APOLOGISE FOR IT.

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ABOUT AUTHOR ~ MANUSH VADHER

WORKING AS SHAREKHAN SUB BROKER AND HOLDING MASTER DEGREE IN FINANCE HAVING EXPERIENCE OVER 10 YEARS IN CAPITAL MARKET.