NIFTY & BANK NIFTY VIEW FOR 22/08/2016

CONSOLIDATED & RANGEBOUND MOVES RESULTING INTO PREMIUM EROSION ON BOTH SIDES OF OPTION CHAIN.

FURTHER TO ADD THAT DURING LAST TRADING SESSION 8500 PE REGAINED HIGHEST OI TAG (WHICH WE EXPECTED DURING TRADING HOURS)

AT PRESENT WE SEE SPOT NIFTY ON DAILY CHARTS AS UNDER:-

AS EXPLAINED BY HORIZONTAL LINE WE FEEL 8600 WILL BE STRONG SUPPORT IN COMING SESSION/SESSIONS.

ANYWAY LETS TRY TO UNDERSTAND/STUDY OPTIONS DATA.

Nifty

August Series

At present 8800 CE is having highest OI so that will without doubt act as strong resistance till Wednesday. Further to add strong additions in 8500 PE also indicates strong support at that level. 

Highest OI tag is with 8500 PE & 8800 CE.

(Shift from 8600 PE to 8500 PE)

Bank Nifty 

August Series (Monthly Expiry)

Liquidation in ITM CE and additions in nearby PE that some softness can be expected in session or two.

Highest OI tag is with 19000 PE & 19500 CE.
(Shift from 18500 PE to 19000 PE)

NOW LETS SEE SOME IMPORTANT NIFTY RATIO

PE RATIO FOR NIFTY STANDS AT 23.70
PE RATIO FOR BANK NIFTY STANDS AT 27.47

AUGUST SERIES
NIFTY PCR ON BASIS OF OI IS 1.03
BANK NIFTY PCR ON BASIS OF OI IS 1.32

FINAL CONCLUSION

Nifty & Bank Nifty
Quantum of change we have not discussed as due to rangebound moves in last few sessions. Today we may exit in our 8700 PE position.

Now Lets see Bank Nifty.
19500 CE without doubt shall act as resistance and due to high additions on PE front and 19000 PE holding highest OI tag some softness can be expected. 

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

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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.