NIFTY & BANK NIFTY VIEW FOR 05/07/2016

AS EXPECTED LAST SESSION WAS UNDER BULLS CONTROL COMPLETELY.

NOW LETS TRY TO MOVE FORWARD TO OPTION CHAIN ANALYSIS.

Nifty

July Series

Except 8050-8300-8400-8450 CE all CE from 7600 to 8500 undergone liquidation  in last trading session but OTM CE 8600-8700-8800 undergone huge additions of about 1000k shares. But Bears was also equally active in different strike prices from 8000-8500 PE and total additions of more than 3725k shares was recorded. 

Highest OI tag is with 8000 PE & 8500 CE.

Bank Nifty 
7th July 2016 Option chain (Weekly Expiry)

Bank Nifty spot closed at 18097 but 18200 to 18500 CE undergone additions of about 350k shares whereas on PE front more than 510k shares added from 17700 to 18100. 

Highest OI tag is with 17500 PE & 18500 CE 

July Series
From 17000 to 18500 all PE undergone addition but at the same time it should be noted that highest OI tag on both side shifted 17500 PE(from 17000 PE) & 18500 CE (from 18000 CE) On CE front from 18100 to 19000 CE all CE undergone additions in OI.

Highest OI tag is with 17500 PE & 18500 CE 

NOW LETS SEE SOME IMPORTANT NIFTY RATIO

PE RATIO FOR NIFTY STANDS AT 22.98
PE RATIO FOR BANK NIFTY STANDS AT 26.03

JULY SERIES
NIFTY PCR ON BASIS OF OI IS 1.13
BANK NIFTY PCR ON BASIS OF OI IS 1.25

FINAL CONCLUSION

Nifty & Bank Nifty
Lets first see Bank Nifty.
Change in highest OI tag is quite surprising but that should be considered as strong bull momentum at the same time if we consider PCR then at present  Bank Nifty is indeed in over bought zone. Additions and OI in 19000 CE is quite surprising so aggressive shorts should be avoided strictly in this Index as downside is limited till 17500 (due to highest OI) 

Now Lets see Nifty.
Though highest OI tag is not changed but additions in 8100 PE and additions in 8600-8700-8800 CE hints some different story though PCR is near to overbought zone. We may see dip of 80-125 before we see close above 8400 but that dip should be considered as buying opportunity. 

Open position is in 8200 PE bought around 100-105 level. Exit on this shall be informed on whatsapp. 

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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