NIFTY & BANK NIFTY VIEW FOR 27/07/2016

LAST TRADING SESSION MOVED AS PER OUR EXPECTATION SOME UPSIDE SWING/MOVES WERE SEEN IN 1st HALF BUT BY CLOSE OF SESSION SUDDEN BEARS ATTACKED WHICH RESULTED INTO RED CLOSING OF BOTH THE INDICES.

FROM COUPLE OF SESSIONS BANK NIFTY IS MORE WEAK THAN NIFTY AS SOMEHOW BULLS ARE NOT ABLE TO CROSS 19000 ON CLOSING BASIS.

WE HAVE ALREADY SHARED NIFTY CHART YESTERDAY VIA WHATSAPP.

ANYWAY LETS TRY TO UNDERSTAND/STUDY OPTIONS DATA.

Nifty

July Series

8400 PE again gained highest OI tag from 8500 PE but that is due to heavy liquidations in 8500 PE. But except 8450 & 8650 PE right from 8400 to 8700 PE heavy liquidation took place of about 2300k shares during last trading session. On CE front also except 8650-8750-8800 CE undergone liquidation from 6200 to 8750 CE. Mammoth addition n 8700 CE has taken place but we that may not create much sense. 

Highest OI tag is with 8400 PE & 8700 CE. (PE front Shifting is just temporary and 8500 PE may regain highest OI tag today) 

August Series

Heavy additions are taking place on both side of option chain. 8800 CE is having good OI but 9000 CE is having highest OI tag. 

Highest OI tag is with 8500 PE & 9000 CE.

Bank Nifty 
4th August 2016 Option chain (Weekly Expiry)

Good additions can be seen in 19500 CE which also gained highest OI tag from 19000 CE. Good additions can be seen in 19000 CE which may still result into softness in Index. 

Highest OI tag is with 18500 PE & 19000 CE.

July Series

Atlast change took place which we were expecting in Bank Nifty OC. 18500 PE took highest OI tag from 18000 PE which may act as good support now. Good liquidation can be seen in 18700-18800 PE but still high OI 19000 Ce is an issue which shall continue to act as resistance going forward. 

Highest OI tag is with 18500 PE & 19000 CE. 

August Series
Somewhat change is taking place 19000-19500-20000 CE on OI front. At present nothing much can be said on this. 

Highest OI tag is with 18000 PE & 19500 CE.  

NOW LETS SEE SOME IMPORTANT NIFTY RATIO

PE RATIO FOR NIFTY STANDS AT 23.56
PE RATIO FOR BANK NIFTY STANDS AT 27.03

JULY SERIES
NIFTY PCR ON BASIS OF OI IS 1.23
BANK NIFTY PCR ON BASIS OF OI IS 1.18

AUGUST SERIES
NIFTY PCR ON BASIS OF OI IS 0.89
BANK NIFTY PCR ON BASIS OF OI IS 0.81

FINAL CONCLUSION

Nifty & Bank Nifty
Lets first see Nifty.
As discussed several times earlier 8500 shall act as strong support. Heavy liquidations in 8500 PE has resulted into change in highest OI tag but as per our understanding that does not mean we have more downside. 

Now Lets see Bank Nifty.
19000 mark is real pain for Bulls and for that probably they may have to wait for today's session atleast to close above that. 18500 PE has act as good support but that is too far away from current levels. 


LIC Housing trade is on basis of OC and chart. (CASH OPEN ~ ALMOST 2nd TARGET WAS DONE AND THOSE REVERTED WERE REQUESTED TO CLOSE POSITIONS) 

Bank of Baroda trade is on basis of OC & VWAP. (1st TARGET DONE)

NIFTY 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