NIFTY & BANK NIFTY VIEW FOR 17/08/2016

LEVELS WERE RESPECTED IN LAST TRADING SESSION BUT SOMEHOW WE WERE NOT CONVINCED WITH THE MOVES SO WE AVOIDED AGGRESSIVE TRADING. EARLY EXIT (C2C) IN AXIS BANK CALL WAS ALSO DUE TO THIS REASON ONLY THAT SOMEHOW MOVES BETWEEN 2 INDICES WERE NOT CONVINCING AND WERE IN NOT IN CORRELATION WITH EACH OTHER.

ANYWAY LETS TRY TO UNDERSTAND/STUDY OPTIONS DATA.

Nifty

August Series

No aggressive built-up can be seen on PE front though we had some sudden downside in last trading session. About 450k shares only were added in 8500 to 8650 PE and on CE front about 1700k shares were added in different strike prices from 8600 to 9000 CE. Overall this can be interpreted as every dip is bought or at level lower level and aggressive buying is taking place.  

Highest OI tag is with 8500 PE & 9000 CE.

Bank Nifty 
18th August 2016 Option chain (Weekly Expiry)

Mammoth additions can be seen on right from 18300 to 19000 PE. (Except 18500 to 18700 PE All strike prices undergone additions of more than 100k shares) On CE front good additions can be seen but not in similar quantum. PCR for this OC is above 1.40 which is very high and it may result into some downside. 

Highest OI tag is with 18500 PE & 19400 CE.

August Series (Monthly Expiry)

Some liquidations can be seen in far OTM PE strike prices. Additions in nearby strike prices like 18800 to 19000 PE also indicates some slipping but not below 18500 now. Some additions in 19300 to 19500 CE can be seen but at this level nearby PE additions should be given more importance. 

Highest OI tag is with 18500 PE & 19500 CE.

NOW LETS SEE SOME IMPORTANT NIFTY RATIO

PE RATIO FOR NIFTY STANDS AT 23.63
PE RATIO FOR BANK NIFTY STANDS AT 26.89

AUGUST SERIES
NIFTY PCR ON BASIS OF OI IS 0.98
BANK NIFTY PCR ON BASIS OF OI IS 1.03

FINAL CONCLUSION

Nifty & Bank Nifty
As discussed earlier no major additions on PE front indicates exhausted bears and no major downside should be expected except any dramatic event or news. PCR is in neutral zone. Manytimes in this series 8800 CE is gaining good OI but 9000 CE is still having highest OI mark which can be considered as good sign for bulls. Infact if we see moves above 8800 before expiry it should not be surprise. . 

Now Lets see Bank Nifty.
Spot Bank Nifty close just above 19000 mark (19002) but it should be noted that additions in weekly expire PE front leads to some doubt over any major upside like closing above 19200-19300 levels in coming days. 

FURTHER SUPPORT AND RESISTANCE LEVELS SHALL ALSO BE SHARED VIA WHATSAPP BEFORE MARKET OPENS. 

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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.

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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.