NIFTY & BANK NIFTY VIEW FOR 22/02/2016

7235 WAS OUR LEVEL OF RESISTANCE AND BULLS MANAGED TO  MAKE HIGH OF 7227...!!!

WHEREAS ON LOWER SIDE LOW OF 7146 WAS RECORDED (OUR SUPPORT LEVEL WAS 7148).

ANYWAY LETS TRY TO MOVE FORWARD TO OPTION CHAIN ANALYSIS.

Highest OI tag is still with 7400 CE but additions in 7300 & 7200 PE is also interesting. Deep ITM options have undergone liquidations. 

Additions in 7350 & 7400 CE gives hint that strong resistance zone is 7350-7400 and we may see expiry below 7400 levels only. Additions in 7200 PE from last 2 sessions gives hint of volatility to be continued in next session too.

Now if we see next series option chain then 7000 PE is having huge OI which we feel may act as strong support for next series. On CE front 7500-7600 are standing with almost similar OI so it will be interesting to see fight between these 2.

Bank Nifty options data suggests strong support at 14000 level whereas resistance comes at 15000 mark. 

February Series
Highest OI tag for Nifty is with 7000 PE & 7400 CE. 
Highest OI tag for Bank Nifty is with 14000 PE & 15000 CE. 

March Series
Highest OI tag for Nifty is with 7000 PE & 7600 CE. 
Highest OI tag for Bank Nifty is with 14000 PE & 16000 CE. 

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

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

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

RESISTANCE LEVELS:- 14526 & 14747 
SUPPORT LEVELS:- 14252, 14084 & 13811

NOW LETS SEE SOME IMPORTANT NIFTY RATIO

PE RATIO FOR NIFTY STANDS AT 19.50
PE RATIO FOR BANK NIFTY STANDS AT 15.90

NIFTY PCR ON BASIS OF OI IS 0.83
BANK NIFTY PCR ON BASIS OF OI IS 0.69

FINAL CONCLUSION

Additions in 7200 PE may spoil bull party but looking at option chain and other analysis tools we feel that Bulls may try to inch up towards 7300-7350 zone in coming sessions. Also Bank Nifty option chain suggest some upside in coming sessions. Any short side trade should either be swing based and should be traded with strict sl only...!!! 

As we feel momentum is quite bullish and bulls are preparing their road ahead for next series which may help option writers to write options at higher strike prices. 

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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.