NIFTY & BANK NIFTY VIEW FOR 19/07/2016

YESTERDAY WE HAD GIVEN ALERT TO YOU ALL WHEN NIFTY WAS NEAR TO TOP AND THAT WAS NOTHING ELSE BUT WAS PURELY ON OPTIONS CHAIN CHANGES (ALSO TO ADD WE WERE TRADING NEAR TO HIGHEST CE OI)

NOW LETS TRY TO MOVE FORWARD TO OPTION CHAIN ANALYSIS.

Nifty

July Series

Except 8300 & 8500 PE all other PE from 8000 to 8500 (not considered xx50 strike prices) have undergone liquidation. About 500k shares were added in 8500-8600-8700 PE. But 8500 & 8600 CE undergone additions more than 1000k. 

Highest OI tag is with 8400 PE & 8600 CE.

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

More than 450k shares were added in 19200-19300-19400 CE. About 200k shares were added in 19000 to 19500 PE but OI in 18000 & 18500 is almost the same. 

Highest OI tag is with 18000 PE & 19300 CE. 

Expecting shift OI from 18000 to 18500 PE today. 

July Series
Yesterday though Bank Nifty made high of 19158 but due to highest OI at 19000 CE and with no major signs of additions at 19500 CE same got corrected till sub 19000. No major additions can be seen in OTM strike CE above 19000. 

On PE front mammoth additions took place 19000 PE but 18000 PE has not lost its highest OI tag. 

Highest OI tag is with 18000 PE & 19000 CE 

As there is slightly mismatch in highest OI tag in weekly and monthly series we are on avoid side of trade for Bank Nifty at present on POSITIONAL BASIS

NOW LETS SEE SOME IMPORTANT NIFTY RATIO

PE RATIO FOR NIFTY STANDS AT 23.34
PE RATIO FOR BANK NIFTY STANDS AT 27.12

JULY SERIES
NIFTY PCR ON BASIS OF OI IS 1.11
BANK NIFTY PCR ON BASIS OF OI IS 1.44

FINAL CONCLUSION

Nifty & Bank Nifty
Lets first see Nifty.
Till the highest highest OI is between 8400-8600 zone (PE-CE) moves within this range can only be expected. 

Now Lets see Bank Nifty.
As there is slight mismatch in highest OI in weekly & monthly contract aggressive trades are to be avoided and positional trades only with hedge is preferred.  

Bajaj-Auto trade was purely on basis of highest OI and resistance levels. 

Maruti trade was on basis of highest OI with chart pattern and few technical indicators but early exit was wrong decision. 

VEDL trade was on basis of tight range bound moves but due to passage of time premium erosion was taking place so exited. 

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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