NIFTY & BANK NIFTY VIEW FOR 28/07/2016

LAST TRADING SESSION WAS FULL OF VOLATILITY AND SOME WHAT OPTIONS PREMIUM CHEWING TOO...!!!

ANYWAY LETS TRY TO UNDERSTAND/STUDY OPTIONS DATA.

Nifty

July Series

Throughout the day dramatic changes took place in options chain. At one point of time it was almost certain that even on EOD basis 8800 CE may gain highest OI tag but then sudden sell off came in and at the end again 8500 PE & 8700 CE remained the same. Nothing much needs to be discussed at present level for current month series as we have expiry 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. (Repeat comment)

Highest OI tag is with 8500 PE & 9000 CE.

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

Still about 6 sessions to go for this expiry and as 19500 CE has gained highest OI tag. But surprisingly 19000 PE gained highest OI tag from 18500 PE. May be this is one of the reason that we had close above 19000 for Bank Nifty. 

Highest OI tag is with 19000 PE & 19500 CE.

July Series

Contrary to our thinking/view Bank Nifty gave close above 19000 but that was due to some liquidation and massive additions in 19300-19500 CE lead to this. 

Highest OI tag is with 18500 PE & 19000 CE. 

August Series
Good additions were made in 18500 PE which resulted almost same OI in 18000 & 18500 PE so if in today's session 18500 PE gets highest OI tag we would not be surprised. 

Highest OI tag is with 18000 PE & 19500 CE.  

NOW LETS SEE SOME IMPORTANT NIFTY RATIO

PE RATIO FOR NIFTY STANDS AT 23.63
PE RATIO FOR BANK NIFTY STANDS AT 27.26

JULY SERIES
NIFTY PCR ON BASIS OF OI IS 1.25
BANK NIFTY PCR ON BASIS OF OI IS 1.25

AUGUST SERIES
NIFTY PCR ON BASIS OF OI IS 0.88
BANK NIFTY PCR ON BASIS OF OI IS 0.86

FINAL CONCLUSION

Nifty & Bank Nifty
Lets first see Nifty.
Though we have very high PCR in current series but this does not mean to go short infact through out the series it remained neutral to overbought. Anyway today we have expiry so nothing much matter on that front. Next series PCR is very low which can be considered good news for Bulls. We still have same opinion that 8500 shall act as good support for next few sessions (infact till August expiry) except any dramatic news/event. Expecting Nifty to touch 8800 in August series. 

Now Lets see Bank Nifty.
Some resistance or even we can say troublesome zone is there around 19000 on closing basis but 18500 PE (weekly expiry) did it job and we hope this may continue. 19400 is next immediate target on upside as we have highest OI 19500 CE weekly expiry at first and then monthly OC too confirms it at present. 

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

NIFTY trade is on basis of OC and chart. (already gained about 45-50 points in it in partial profit booking at again re-entered in it at same levels)

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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.

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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