NIFTY & BANK NIFTY VIEW FOR 20/07/2016

DURING YESTERDAY'S SESSION WE HAD CLEARLY GIVEN OUR VIEW THAT WHY WE ARE NOT EXPECTING CLOSE 8500 FOR SPOT. ALSO WE HAD GIVEN SUPPORT LEVEL FOR SPOT NIFTY AND FROM THAT LEVELS BULLS MANAGED SMART RECOVERY.

NOW LETS TRY TO MOVE FORWARD TO OPTION CHAIN ANALYSIS.

Nifty

July Series

More than 100k share were added in 8400-8450-8500 PE which indicated strong based built up at 8400 PE (highest PE OI) On CE front about 300k shares were added in 8400-8450-8500 CE. 

Highest OI tag is with 8400 PE & 8600 CE.

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

More than 500k shares were added in 18900 to 19500 CE. Additions on PE front can be seen but not in high quantum as compared to CE front. As expected highest OI tag on PE front shifted to 18500 from 18000. 

Highest OI tag is with 18500 PE & 19300 CE. 

July Series
OI difference between 18000 & 18500 PE is about 35k but looking at changes took place in last trading session now in next session or 2 if 18500 PE becomes highest OI on PE front we would not be surprised. But 19500 CE is still too short for this. 

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 23.39
PE RATIO FOR BANK NIFTY STANDS AT 27.09

JULY SERIES
NIFTY PCR ON BASIS OF OI IS 1.15
BANK NIFTY PCR ON BASIS OF OI IS 1.41

FINAL CONCLUSION

Nifty & Bank Nifty
Lets first see Nifty.
Based yesterday's view one could have initiated short strangle options strategy in Nifty intraday/positional basis. 

Now if we see changes in OC then again range bound moves with bit negative side can be expected. But again close below 8500 spot Nifty is not expected if that is case then one can start accumulate CE for next series in 3 legs. (More on this shall be updated during market hours via whatsapp) 

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

Further if you are aggressive trader then you may enter into short strangle in Bank Nifty monthly expiry but that always involves some risk or big gap up/down. 

Mindtree trade was on basis of Option Chain but that was wrongly interpreted by us so exit was made. After our exit stock feel more than 10/- 

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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