NIFTY & BANK NIFTY VIEW FOR 02/08/2016

LOW OF 8590 BUT AGAIN CLOSE ABOVE 8600...!!!

IN OUR LAST POST WE HAD CLEARLY SAID THAT WE SEE STRONG SUPPORT AT 8600 MARK ON DAILY CHART. ALSO DURING LAST TRADING SESSION WE HAVE SHARED OUR VIEW ON NIFTY ON WEEKLY CHART AS PER THAT WE SEE STRONG SUPPORT AT 8577 LEVEL.

ANYWAY LETS TRY TO UNDERSTAND/STUDY OPTIONS DATA.

Nifty

August Series

Still both side built-up can be seen on both sides. But important thing is that somehow now option traders have understood/accepted fact that Nifty is in upswing or bull momentum as we can see that options are fairly valued. 

Highest OI tag is with 8500 PE & 9000 CE.

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

Dramatic changes are taking place daily but still strong support can be found at 18500 levels. Huge additions can be seen on CE front right from 18800 to 19500. 

Highest OI tag is with 18500 PE & 19000 CE.

August Series (Monthly Expiry)

Some liquidation can be seen in ITM PE but OI at 18000 PE should not be ignored. Good additions can seen at 19000 and above CE but still 19000 on closing basis still pain for Bank Nifty Bulls. 

Highest OI tag is with 18500 PE & 19500 CE.

NOW LETS SEE SOME IMPORTANT NIFTY RATIO

PE RATIO FOR NIFTY STANDS AT 23.61
PE RATIO FOR BANK NIFTY STANDS AT 26.52

AUGUST SERIES
NIFTY PCR ON BASIS OF OI IS 0.87
BANK NIFTY PCR ON BASIS OF OI IS 0.91

FINAL CONCLUSION

Nifty & Bank Nifty
Lets first see Nifty.
As discussed in last week our target of 8700-8720 was achieved today and then melt-up took place. Fortunately again we were able to book profit in 8500 CE at our desired level again and again we have bought it again and at last close we are again at profit. 

At present looking at moves and with changes in options chain our view is still the same that below 8500 we do not see 3 closes in row. 

Now Lets see Bank Nifty.
Real pain is in Bank Nifty may be due to the reason that at present we are at its highest valuation and that is resulting somewhere resistance as per fundamentals. Our trade in Bank Nifty ended up with hitting SL. At present we are in no trade zone for Bank Nifty. 

Open Position at Present (Confirmed with you all)

NIFTY trade is on basis of OC and chart. (8500 CE)

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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