NIFTY & BANK NIFTY VIEW FOR 16/02/2016

AFTER LONG PAUSE BULLS HAVE MADE COME BACK...!!!

BUT WE FEEL THAT JUST BY ONE SESSION WE CANNOT SAY THAT BULLS ARE BACK AND WE CAN HAVE RALLY TILL 7500...!!!

BEFORE WE DISCUSS ANY THING LETS TRY TO SEE & UNDERSTAND NIFTY ON DAILY CHART WITH SINGLE INDICATOR.

IN ABOVE CHART WE CAN SEE THAT CURRENT MOVEMENT IN NIFTY IS SOME WHAT SIMILAR TO MOVEMENT IN AUGUST 2015 (BOTH ARE MARKED WITH YELLOW ARROWS)

NOW IF WE SEE THAT LAST CANDLE (FRIDAY'S CLOSE) WAS COMPLETELY OUTSIDE BOLLINGER BAND AND HENCE UPMOVE IN TODAY SESSION WAS VERY MUCH OBVIOUS...!!!

ANYWAY LETS TRY TO MOVE FORWARD TO OPTION CHAIN ANALYSIS.

Huge unwinding was seen in 7000 CE (ITM) and few far OTM CE (7600 to 8400 ~ not considered xx50 strike price) but simultaneously mammoth additions were seen in 7100 PE (near by PE) 

Also if we look at addition in 7400 & 7500 CE we feel in coming days 7400 CE may become highest OI and that may act as strong resistance. Similarly good additions were seen in 7000 PE so except any huge movement we feel that shall act as strong support. 

Now if we talk about Bank Nifty then on PE front highest OI is with 14000 PE but if we look that addition in 13500 PE and also compare 13500, 14000 & 14500 PE OI then all 3 PE Strike prices are in good fight for highest OI.

Bank Nifty CE front also highest OI tag fight is between 15000 & 16000 (15500 is nowhere in picture) 

Highest OI tag for Nifty is with 7000 PE & 7500 CE. 

Highest OI tag for Bank Nifty is with 14500 PE & 16000 CE. 

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

RESISTANCE LEVELS:- 7235, 7321 & 7427
SUPPORT LEVELS:- 7148, 7041 & 6975

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

RESISTANCE LEVELS:- 14526, 14747 & 14967
SUPPORT LEVELS:- 14252, 14082 & 13811

NOW LETS SEE SOME IMPORTANT NIFTY RATIO

PE RATIO FOR NIFTY STANDS AT 19.32
PE RATIO FOR BANK NIFTY STANDS AT 16.01

NIFTY PCR ON BASIS OF OI IS 0.83
BANK NIFTY PCR ON BASIS OF OI IS 0.62

FINAL CONCLUSION

Looking at changes in option chain we next 2 sessions will be crucial for Bulls to lift Nifty till 7400/7500 levels. But we feel that road ahead for Bulls may be not easy as it was today; as Bank Nifty highest OI tag on CE front may shift to 15000 CE which can create some tough days or path for Bulls in coming sessions of February series. 

PLEASE NOTE THAT TODAY'S OPTIONS DATA ANALYSIS AND CONCLUSION IS GIVEN BY ONE OF OUR STUDENT WHOSE NAME IS MR PADMANABHAN (CONT # 09036810099) HE IS STILL UNDERGOING WITH ONLINE SESSION BUT LOOKING AT HIS EAGERNESS TO LEARN WE ARE POSTING HIS WORK.

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STANDARD DISLCOSURE:-

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.

WE REQUEST ALL READERS TO GIVE THEIR FEEDBACK ON NIFTY50STRIKER@GMAIL.COM OR BY CALLING/WHATSAPP MESSAGE ON 08866145155 OR BY COMMENTING ON THIS BLOG POST.

ABOUT AUTHOR ~ MANUSH VADHER

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