NIFTY & BANK NIFTY VIEW FOR 15/07/2016

AGAIN SHIFTING OF HIGHEST OI TAG AND FRUSTRATED BEARS WAS LAST TRADING SCENE...!!!

NOW LETS TRY TO MOVE FORWARD TO OPTION CHAIN ANALYSIS.

Nifty

July Series

Except 7100 CE every CE from 7000 to 8550 undergone liquidation in last trading session. Overall from 7000 to 8550 CE total liquidation of 1421k shares took place in last trading session. On PE Front just from 8400 to 8700 PE about 2200k shares were added which again shows frustration of Bears. But surprisingly if we see PCR from 8000 to 9000 range it is just near to 1 so this has lead to momentum in market and at present we are at midpoint. 

Highest OI tag is with 8400 PE & 8700 CE.

Bank Nifty 
21st July 2016 Option chain (Weekly Expiry)

From 18000 to 19000 CE just over 300k shares were added but on PE front mammoth additions of over 665k shares can be seen. 

Highest OI tag is with 18000 PE & 19000 CE. 

July Series
Not even single strike price undergone liquidation from 17500-19000 PE this show how much frustrated Bears are and this shows their desperation to bring Bank Nifty down. 

Good quantum of additions can be seen even above 19000 CE. 

Highest OI tag is with 18000 PE & 19000 CE 

NOW LETS SEE SOME IMPORTANT NIFTY RATIO

PE RATIO FOR NIFTY STANDS AT 23.49
PE RATIO FOR BANK NIFTY STANDS AT 27.03

JULY SERIES
NIFTY PCR ON BASIS OF OI IS 1.20
BANK NIFTY PCR ON BASIS OF OI IS 1.38

FINAL CONCLUSION

Nifty & Bank Nifty
Lets first see Nifty.
ITM liquidation and OTM additions is regular phenomenon of recent past in Nifty CE Front. Last 2-3 times tag of highest OI changes in last 60 mins of trading session. Further to add additions in 8900 CE during Wednesday's session may still result into more upside. OI in 8800 & 8900 CE is not to be ignored and further the mammoth additions in PE front in ITM, ATM & OTM (nearest strike price) indicates if we still see shifting of OI then it will not be surprise.  

Now Lets see Bank Nifty.
Weekly contract expiry took place yesterday so at present not considering that at present but still OI at 19000 in monthly contract indicates strong resistance but looking at moves if that gets shifted we shall not be surprised. 

Any far OTM PE buying outside highest OI tag with holding time period of 3-4 sessions is not recommended at this stage. (For both Nifty & Bank Nifty) 

Indusind Bank trade was purely on basis of VWAP & 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