NIFTY & BANK NIFTY VIEW FOR 27/05/20164

2nd CONSECUTIVE DAY BULLS  RULED OVER THE STREET AND SOMEHOW WE WERE NOT ABLE TO UNDERSTAND IT WITH OUR WAY OF 'OI' DATA ANALYSIS.

NOW LETS TRY TO MOVE FORWARD TO OPTION CHAIN ANALYSIS.

Nifty

June Series

More than 1600k shares were added during today's session in different strike prices from 7800 to 8200. Whereas on PE front mammoth additions of about 4500k shares took place today especially 7900 & 8000 added more than  2700k share shares. 

Highest OI tag is with 7800 PE & 8200 CE.

Bank Nifty 
June Series

More than 240k shares were added today in different strike prices from 16500 to 17500 CE. On PE front more than 266k in same range. 

Highest OI tag is with 16500 PE & 17500 CE 

NOW LETS SEE SOME IMPORTANT NIFTY RATIO

PE RATIO FOR NIFTY STANDS AT 22.39
PE RATIO FOR BANK NIFTY STANDS AT 22.12
(As on 25/05/2016)

JUNE SERIES
NIFTY PCR ON BASIS OF OI IS 1.05
BANK NIFTY PCR ON BASIS OF OI IS 1.11

FINAL CONCLUSION

Nifty & Bank Nifty
After very long time Nifty & Bank Nifty closed above 8000 & 17000 respectively. Spot Nifty closed about 140 points away from highest CE OI whereas Spot Bank Nifty is also have same story. 

Looking at changes in options chain we feel that positional traders should keep their positions hedged as we are expecting some volatile moves in next 2-3 sessions.   

To have exact inference out of options chain will be bit difficult at present. 

Last thing those who say highest OI theory is weak indicator may note that highest OI tag on PE front was at 7900 PE & 8100 CE at close today.  (Expiry day) Shifting of OI dependent on market moves it has very little impact on call/put writing/buying. 

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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 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. 

NIFTY & BANK NIFTY VIEW FOR 04/03/2016