NIFTY & BANK NIFTY VIEW FOR 21/07/2016

YESTERDAY BULLS MANAGED TO STEAL THE SHOW BUT SOMEHOW BANK NIFTY WAS NOT ABLE TO PERFORM IN LINE WITH NIFTY.

TODAY WE HAVE BANK NIFTY WEEKLY EXPIRY AND THAT MAY CHANGE MOMENTUM ALTOGETHER.

NOW LETS TRY TO MOVE FORWARD TO OPTION CHAIN ANALYSIS.

Nifty

July Series

More than 1000k share were added liquidated in different strike prices from 8000 to 8650 CE. (Infact except 8250 CE all undergone liquidation) Further to add that more than 1700k shares were added in 8400-8600 PE. But we feel that shifting of highest OI tag on PE & CE may take place today. Please note we have already explained/given our view via whatsapp message why we feel 8500 will not broken on closing basis for continuous 3 sessions.  

Highest OI tag is with 8400 PE & 8600 CE.

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

From 18700-19100 PE 400k shares were added. Infact CE are bit overvalued than PE. More 400k shares were added in 19000-19400 CE. 

Highest OI tag is with 18800 PE & 19200 CE. (Earlier 18500 PE & 19300 CE) 

July Series
No major additions can be seen above 19000 CE so that may act as resistance at present. Further additions of just above 100k shares in 18500-19000 PE leads to some doubt over upside move than 19000 at present/today's session in 1st half. 

Highest OI tag is with 18000 PE & 19000 CE. (But 18500 PE OI suggests it may take highest Oi tag) 

NOW LETS SEE SOME IMPORTANT NIFTY RATIO

PE RATIO FOR NIFTY STANDS AT 23.49
PE RATIO FOR BANK NIFTY STANDS AT 27.18

JULY SERIES
NIFTY PCR ON BASIS OF OI IS 1.22
BANK NIFTY PCR ON BASIS OF OI IS 1.39

FINAL CONCLUSION

Nifty & Bank Nifty
Lets first see Nifty.
PCR is too much high for July series at present but still looking at OC we feel closing below 8500 spot Nifty for 3 session in row is bit tough. Infact we feel every dip till this level is small buying opportunity for OTM CE August series with holding period of 5-7 sessions. (Traders can trade in small quantity if not comfortable) 

August series OC we are not discussing because we have already made our view clear for support levels via whatsapp. 

Now Lets see Bank Nifty.
Monthly series OI at 19000 CE is very high and that is the reason it is under performing. Not expecting any major shifting in today's session. 

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. 

Dr Reddy trade is on basis of OC and chart (Chart already shared)

LIC Housing trade is on basis of OC and chart.

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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