NIFTY & BANK NIFTY VIEW FOR 18/02/2016

RALLY OF MORE THAN 150 POINTS BY BULLS...!!! 
(CONSIDERED LOW TO HIGH)

ALSO IN OUR LAST POST WE HAD SAID THAT WE EXPECT NIFTY TO CLOSE BELOW 7000 BUT SUDDEN FLASHES BELOW 7000 IN INITIAL MOVES WERE GOOD ENOUGH TO PROVE WORK OF OUR STUDENT WHO WAS WRITING BLOG FROM LAST 2 DAYS. ALSO HE SAID THAT BANK NIFTY IS SHOWING MORE WEAKNESS THAN NIFTY AND TODAY WE SEE THERE IS MISMATCH IN BANK NIFTY SPOT & FUTURE CLOSE (CLOSED IN PREMIUM OF 90 POINTS FROM DISCOUNT OF 26 POINTS)

ANYWAY LETS TRY TO MOVE FORWARD TO OPTION CHAIN ANALYSIS.

At one point of time 7200 CE OI was having highest OI surpassing 7500 CE but huge unwinding was also see in positions made in 7000 CE during initial fall. Except 7400 CE all major CE strike prices (7100 to 8000 CE and not considered XX50 strike price) have undergone liquidation during today's rally. Now if we see PE front then liquidation took place in many ITM PE but huge additions were seen in 7000. (both CE &PE) 

If we talk about Bank Nifty then good additions were made in 14000 CE. On PE front 14000 & 13500 PE undergone almost similar OI additions which also interesting on total OI front.

Highest OI tag for Nifty is with 7000 PE & 7400 CE. 

Highest OI tag for Bank Nifty is with 14000 PE & 15000 CE. 

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

RESISTANCE LEVELS:- 7148, 7235, 7321 & 7427
SUPPORT LEVELS:- 7041, 6975 & 6869

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

RESISTANCE LEVELS:- 14253, 14526 & 14747 
SUPPORT LEVELS:- 14082 & 13811

NOW LETS SEE SOME IMPORTANT NIFTY RATIO

PE RATIO FOR NIFTY STANDS AT 19.01
(as per 16/02/2016)
PE RATIO FOR BANK NIFTY STANDS AT 15.70

(as per 16/02/2016)

NIFTY PCR ON BASIS OF OI IS 0.81
BANK NIFTY PCR ON BASIS OF OI IS 0.65

FINAL CONCLUSION

As expected in last post 7500 CE lost highest OI tag to 7400 CE which makes 7400 as wall of resistance on basis of OI. On Bank Nifty front 15000 may act as wall of resistance. 

Looking at changes in Nifty option chain we feel that those who bought CE in last 2-3 sessions used today's rally for exit. Also OI addition 7000 (CE & PE) shall make moves interesting. On trading perspective we feel that traders should avoid Nifty trading as it is very much volatile and it may end up with Stop loss triggers. 

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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.

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.