NIFTY & BANK NIFTY VIEW FOR 08/08/2016

BULLS MANAGED TO CROSS 8650-8680 ZONE ON CLOSING BASIS ON WEEKLY CHART BUT FOLLOW UP BULLISH CANDLE OR UPSIDE MOVE IS REQUIRED FOR EXPECTING LIFE HIGH AT CURRENT LEVELS. FURTHER TO ADD WE HAVE RBI POLICY ON TUESDAY SO TRADING IN NEXT TRADING SESSION SHOULD BE DONE WITH EXTRA CAUTION.

ANYWAY LETS TRY TO UNDERSTAND/STUDY OPTIONS DATA.

Nifty

August Series

Right from 8500 to 9000 CE except 8900 & 8950 CE all undergone liquidation. About 3900k shares got liquidated in single session. Right from 8400 to 8800 PE about 3200k shares were added. But looking at valuations perspective again PE are overvalued due to sudden one sided move. 

Highest OI tag is with 8500 PE & 9000 CE.

Bank Nifty 
11th August 2016 Option chain (Weekly Expiry)

Liquidations can be seen at from 18500 to 19000 CE (except 18900 CE) but good additions can also be seen at 19100 CE. Weekly contract also showing same thing which we saw in Nifty. Right from 18000 to 19500 PE all undergone additions. Here also PE are bit over valued. 

Highest OI tag is with 18000 PE & 19000 CE.

August Series (Monthly Expiry)

In monthly series also right from 18500 to 19100 CE huge liquidation can be seen. No major additions can be seen on CE front. But on PE front 18500 & 19000 PE undergone some liquidation moreover no major additions can be seen. 

Highest OI tag is with 18000 PE & 19500 CE.

NOW LETS SEE SOME IMPORTANT NIFTY RATIO

PE RATIO FOR NIFTY STANDS AT 23.74
PE RATIO FOR BANK NIFTY STANDS AT 26.78

AUGUST SERIES
NIFTY PCR ON BASIS OF OI IS 0.92
BANK NIFTY PCR ON BASIS OF OI IS 1.00


REASON FOR EXIT IN NIFTY 8500 CE
Nifty 8500 CE trade went wrong in last time and early exit was reason that Bank Nifty was not moving as per expectation (also expected reversal from higher levels) and almost every CE from 8000-9000 started liquidation. 

FINAL CONCLUSION

Nifty & Bank Nifty
Mammoth liquidations on CE front indicates profit booking by buyers of CE. Further to add that mammoth additions on PE front indicates sudden upside move was not expected by traders. More upside till 8750-8775 cannot be ruled out but fresh positions on bullish side should be taken with care due to RBI policy and mammoth liquidations on CE front and PCR has come out from buying levels. 

Now Lets see Bank Nifty.
Still 19000 shall act as stiff resistance on closing basis. Moreover we have RBI policy on Tuesday so some extra caution is required. At present we are in not trade zone for Bank Nifty.

-----------------------------------------------------------

TECHNICAL ANALYSIS TRAINING

WE ALSO CONDUCT TECHNICAL ANALYSIS TRAINING VIA ONLINE AS WELL AS ONE ON ONE ON PERSONAL BASIS. FOR DETAILS CONTACT US ON 08866145155 (PHONE CALL ONLY)

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.