NIFTY & BANK NIFTY VIEW FOR 02/04/2016

NIFTY IN LAST TRADING SESSION RESPECTED 7820 IN 1st HALF THEN BEARS ATTACKED AND BUT BULLS MANAGED TO COMEBACK AND THUS 21 EMA WAS RESPECTED.

IF WE TALK ABOUT BANK NIFTY THEN FOR 1st HALF BULLS WERE IN FULL CONTROL AS EXPECTED BY US BUT THEN VOLATILITY WAS AT ITS PEAK.

NOW NIFTY HAS FORMED DOJI CANDLE ON DAILY CHARTS AND THAT REFLECTS INDECISIVE MODE.

NOW LETS TRY TO MOVE FORWARD TO OPTION CHAIN ANALYSIS.

Nifty

As it was first trading session of May series position built-up was seen on both side of option chain. Mammoth additions of more than 2600k in 7200 & 7300 PE leads to doubt over further upmove. On CE front 7900 & 8100 CE together added more than 2000k shares in OI. 

Rest if we talk about CE front total additions then more than 5600k shares were added in different strike prices. Bears added about 6100k shares during last trading session. 

Highest OI tag is with 7700 PE & 8200 CE. (same) 

Bank Nifty 
17000 & 17500 CE together added more than 115k shares in OI. But 16000 & 16500 PE together added more than 95k shares. 

About 250k shares were added in CE front whereas on PE front more than 320k shares added in OI. 

Highest OI tag is with 16000 PE & 17500 CE. (same) 

NOW LETS SEE SOME IMPORTANT NIFTY RATIO

PE RATIO FOR NIFTY STANDS AT 21.24
PE RATIO FOR BANK NIFTY STANDS AT 18.35

MAY SERIES
NIFTY PCR ON BASIS OF OI IS 0.98
BANK NIFTY PCR ON BASIS OF OI IS 0.86

FINAL CONCLUSION

Nifty & Bank Nifty
Looking at daily Nifty candle and support at 21 EMA (7782) and correlating it with options data we feel that Bears may try to push Nifty down but again closing basis support is at 7700. As options data also gives hint of support at 7700 and we have unfilled gap at 7717-7772 zone. 

Bank Nifty is having strong support 16400-16500 zone below which it may slip till 16200-16300 zone. Also we have strong support at 16000 mark as per options data. 

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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. 

NIFTY & BANK NIFTY VIEW FOR 04/03/2016