NIFTY & BANK NIFTY VIEW FOR 20/04/2016

TODAY TILL 1PM NIFTY WAS TRADING WELL ABOVE 7800 BUT THEN BEARS ATTACKED AND TOWARDS THE END NIFTY FUTURE CLOSED WITH LOSS OF MORE THAN 100 POINTS OVER ITS PREVIOUS CLOSE.

BUT WE HAD TRIED TO GIVE CAUTION AT 2 PM ON OUR TWITTER ACCOUNT.

 LETS HAVE LOOK AT NIFTY FUTURE DAILY CHART.

Again we have made some changes in above chart as 7700 PE has taken highest OI tag. 

NOW LETS TRY TO MOVE FORWARD TO OPTION CHAIN ANALYSIS.

Nifty

May Series

More than 2600k shares were liquidated on PE front in today's Bear attack. Especially from 7700 to 8000 PE more than 2900k were liquidated. 

On CE front about 6000k shares were added during today's session but major additions is in 7900 & 8000 CE (4268k shares were added) 

Highest OI tag is with 7700 PE & 8000 CE.

Bank Nifty 
More than 40k shares were liquidated on PE front. But major liquidation came from 16500 to 17000 PE which is about 88k shares. 

CE front about 324k shares were added during today's session which is very high in nature. Major addition was in 16500 & 17000 CE which is about 212k shares. 

Highest OI tag is with 16000 PE & 17000 CE. 

NOW LETS SEE SOME IMPORTANT NIFTY RATIO

PE RATIO FOR NIFTY STANDS AT 21.57
PE RATIO FOR BANK NIFTY STANDS AT 19.16
(As per 18/05/2016 EOD data) 

MAY SERIES
NIFTY PCR ON BASIS OF OI IS 0.78
BANK NIFTY PCR ON BASIS OF OI IS 0.83

FINAL CONCLUSION

Nifty & Bank Nifty
Nifty PCR is in oversold zone and which is quite obvious as both side of options chain have shown contradictory changes. But it should be noted that Today Nifty came down after 2 pm was due to previous positions taken on PE front in this week which we have been mentioning also before this Bear attack more than 1100k shares were added in 7800 PE. Now as we are bit near to highest OI mark on PE front some good bounce back cannot be ruled out in coming 2-3 sessions. Additions made on CE front are not getting liquidated as per EOD data. 

Nifty Future Resistance at 7800-7830-7860
Nifty Future Support 7760-7720-7690


From last 9 sessions Bank Nifty is not closing below 16500 which is very strong indication as per our view. Today also it took strong support near to 16500 and it also respected our support level of 16550. In coming 2-3 sessions we can expect good bounce back as good additions can be seen at 16500 & above strike price CE options. 

Bank Nifty Future Resistance at 16580-16670-16735-16800
Bank Nifty Support at 16450-16375-16320

WE ARE IN NO TRADE ZONE FOR NIFTY & BANK NIFTY FOR REMAINING SESSIONS OF THE WEEK.

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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