NIFTY & BANK NIFTY VIEW FOR 09/08/2016

STILL LIQUIDATION MODE IS ON FOR ALL CE WHETHER ITM, ATM OR OTM...!!! SOME ODD ADDITIONS IN 8750, 8850, 8950 AND ABOVE CE CAN BE SEEN BUT THOUGH ADDITIONS MIGHT BE HIGH OVERALL OI IS NOT MUCH SIGNIFICANT SO WE ARE IGNORING THAT FACT AT PRESENT.

ANYWAY LETS TRY TO UNDERSTAND/STUDY OPTIONS DATA.

Nifty

August Series

Mammoth additions can be seen in 8500 to 8800 PE but no additions in ATM or OTM CE leads to doubt over more upside. 

Highest OI tag is with 8500 PE & 9000 CE.

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

ITM liquidation and OTM additions is good sign for Bank Nifty Bulls but mammoth additions on PE front is sign of caution too. Bank Nifty moved in range of tight 100 points from previous close but still close above 19000 mark is tough task for Bulls. Only good thing that we can see is that in 19500 CE is gaining some momentum. 

Highest OI tag is with 18000 PE & 19500 CE.

August Series (Monthly Expiry)

Good quantum of liquidations can be seen at 18000 PE mark which resulted into 18500 PE highest OI. Nothing major can be found as huge position built-up has taken place in weekly series due to RBI policy today. 

Highest OI tag is with 18000 PE & 19500 CE.

NOW LETS SEE SOME IMPORTANT NIFTY RATIO

PE RATIO FOR NIFTY STANDS AT 23.82
PE RATIO FOR BANK NIFTY STANDS AT 26.80

AUGUST SERIES
NIFTY PCR ON BASIS OF OI IS 0.98
BANK NIFTY PCR ON BASIS OF OI IS 0.99

FINAL CONCLUSION

Nifty & Bank Nifty
Mammoth liquidations on CE front indicates profit booking by buyers of CE. (Repeat comment) Further to add that mammoth additions on PE front indicates sudden upside move was not expected by traders. (Repeat comment) Now yesterday's candle is bit negative for Bulls and all depends on today's move. If today we see bit negative opening and then red close then we can expect Spot Nifty sliding till 8650 levels too. PCR is inching towards neutral to over bought level now. 

Now Lets see Bank Nifty.
There is some contradiction between Nifty & Bank Nifty in options chain. This is may be due to RBI policy today. Please note that 19500 CE is remains highest OI tag on weekly contracts too then we can see some upside moves even on closing basis but that all depends after today event. 

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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.