NIFTY & BANK NIFTY VIEW FOR 03/08/2016

AGAIN FLASHES NEAR 8600 BUT CLOSE ABOVE 8600...!!!

TILL THE TIME 8600 IS NOT BREACHED ON CLOSING BASIS WE FEEL WE DO NOT HAVE ANY ISSUE TO KEEP ON HOLDING 8500 CE. BUT PLEASE NOTE WE HAVE BOOKED ENOUGH PROFIT IN THAT TILL NOW. EVERYTIME WE ARE ABLE TO BOOK AT AROUND 260-275 ZONE AND ABLE TO ENTER AROUND 220-230 ZONE BUT TODAY WE GOT ENTRY BIT BELOW AT 215.

ANYWAY LETS TRY TO UNDERSTAND/STUDY OPTIONS DATA.

Nifty

August Series

Though very small in quantum but liquidation in 8500 & 8550 PE gives some surprise. Good additions can be seen in 8600 & 8700 PE which is about 450k also to note that bit far OTM PE 8200-8300 PE undergone good additions of about 325k shares in today's session. But most important part is additions in 8700 to 9200 CE which is about 3060k shares. As per valuations aspect PE are overvalued that CE present (which keeps on changing in intraday day as well as EOD basis)

Highest OI tag is with 8500 PE & 9000 CE.

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

18500 PE is having highest OI at present but till the time we do not see close above 19000 we are in not trade zone. Good additions can be seen in 18800-19000-19200-19500 CE but as per valuations we feel CE are bit costlier than PE at present (this is may be due to value high PE ratio for Bank Nifty and also Bank Nifty is not able to sustain above 19000 easily) 

Highest OI tag is with 18500 PE & 19500 CE.

August Series (Monthly Expiry)

Here also strong base can be found at 18500 due to highest OI at 18500 PE mark but if we see valuations wise then both PE & CE are fairly priced. 

Highest OI tag is with 18500 PE & 19500 CE.

NOW LETS SEE SOME IMPORTANT NIFTY RATIO

PE RATIO FOR NIFTY STANDS AT 23.58
PE RATIO FOR BANK NIFTY STANDS AT 26.47

AUGUST SERIES
NIFTY PCR ON BASIS OF OI IS 0.81
BANK NIFTY PCR ON BASIS OF OI IS 0.94

FINAL CONCLUSION

Nifty & Bank Nifty
Lets first see Nifty.
No change in view we need some good move or either side close (below 8575 or above 8725) 

Now Lets see Bank Nifty.
As discussed in weekly & monthly options chain 18500 shall act as strong support but as per valuations aspect we are in no trade zone. 

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