NIFTY & BANK NIFTY VIEW FOR 11/08/2016

NIFTY MELTED LIKE ANYTHING DURING LAST TRADING SESSION. BUT AGAIN IT WAS AS PER OUR EXPECTATION. OUR STUDENTS KNEW REASON VERY WELL BEHIND 8700 PE TRADE AND MANY OF THEM HAVE BOOK GOOD PROFIT...!!!! 

THOUGH WE DID NOT EXPECTED THAT BEARS MAY SCORE CENTURY BUT DOWNSIDE MOVE WAS CLEARLY DISCUSSED BY US.

ANYWAY LETS TRY TO UNDERSTAND/STUDY OPTIONS DATA.

Nifty

August Series

Except 8850 all PE from 8900 to 8500 PE undergone liquidation. Though mammoth additions are taking place in 8300 PE during last trading session but we do not see 8300 PE taking highest OI tag but yes may be in intraday or session or two 8400 PE may gain highest OI tag. But 8800 CE is almost on the verge of gaining highest OI tag from 9000 CE. Mammoth additions can be seen in 8600-8700-8800 CE.

Highest OI tag is with 8500 PE & 9000 CE.

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

Today we have an expiry for this contract/option series. Highest OI is with 18500 PE so we feel that closing basis again that won't be broken today. Upside 19000 may act as stiff resistance. 

Highest OI tag is with 18500 PE & 190100 CE.

18th August 2016 Option chain (Weekly Expiry)

Positions built-up can be seen on both side of option chain at present and here also we feel that 18500 & 19000 may act as strong support and resistance. 

Highest OI tag is with 18500 PE & 19000 CE.

August Series (Monthly Expiry)

18000 & 18500 PE are giving tough fight to each other for gaining highest OI tag. 19500 CE is having highest OI tag at present which may act as resistance but weekly series clearly says that 19000 may act as strong resistance. 

Highest OI tag is with 18500 PE & 19500 CE.

NOW LETS SEE SOME IMPORTANT NIFTY RATIO

PE RATIO FOR NIFTY STANDS AT 23.44
PE RATIO FOR BANK NIFTY STANDS AT 26.39

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

FINAL CONCLUSION

Nifty & Bank Nifty
ITM, ATM & OTM Liquidations on PE front gives some comfort that now no major downside can be expected except any dramatic event. Further nearby OTM CE front additions gives hint of nearby bottom for this series. Further to add PCR also indicates we are again entering in buying zone. 

WE REQUEST YOU ALL TO UPDATE US IF ANYONE OF YOU HAVE TAKEN POSITION DURING LAST TRADING SESSION. 

Now Lets see Bank Nifty.
As we are near to 18500 mark we are near to support levels at present but 18000 PE OI also needs to be tracked closely. At present we are in no trade zone for Bank Nifty. 

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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.