NIFTY & BANK NIFTY VIEW FOR 23/08/2016

FEW FROM YOU BOOKED MORE THAN 25% PROFIT IN 8700 PE AND ALSO FEW FROM YOU HAVE APPRECIATED IMPORTANCE OF OPTIONS CHAIN IN TRADING DECISIONS.

AS DISCUSSED IN LAST POST AND ALSO TRIED TO EXPLAIN VIA SIMPLE CHART (2 TIMES) 8600 IS STRONG SUPPORT FOR SPOT NIFTY AND LOOKING AT MOMENTUM WE DO NOT SEE ANY MAJOR DOWNSIDE EXCEPT ANY DRAMATIC EVENT.

SPOT NIFTY BELOW 8500 IS VERY TOUGH TASK FOR BEARS. WE STILL SAY ONE AND SAME THING THAT WE DO NOT SEE NEW LIFE HIGH BEFORE OCTOBER EXPIRY ATLEAST. TILL THEN WE HAVE TO GO FOR SUCH SWING BASED MOVES ONLY.

Nifty

August Series

Except 3 strike prices all (including xx50 too) PE front strike prices from 8000 to 9300 PE undergone liquidation. Whereas on CE Front mammoth additions of more than 3000k can be seen only in 8600 to 8750 CE. Few from you have discussed about writing or buying but please note we do not see that part. We see only additions in OI. 

Highest OI tag is with 8500 PE & 8800 CE.

Bank Nifty 

August Series (Monthly Expiry)

Still difference between 18500 & 19000 PE is very high so at present we do not see Bank Nifty closing below 19000 for 2 sessions in row. Mammoth additions on CE till 19500 indicates strong resistance at that level. 

Highest OI tag is with 19000 PE & 19500 CE.

NOW LETS SEE SOME IMPORTANT NIFTY RATIO

PE RATIO FOR NIFTY STANDS AT 23.59
PE RATIO FOR BANK NIFTY STANDS AT 27.35

AUGUST SERIES
NIFTY PCR ON BASIS OF OI IS 0.90
BANK NIFTY PCR ON BASIS OF OI IS 1.11

FINAL CONCLUSION

Nifty & Bank Nifty
Though no much importance should be given to current series PCR still but looking at OC and correlating it with charts we feel that 8500 will be respected. Every dip is buying opportunity IF YOU ARE FUTURE TRADER THEN NO NEED TO WORRY ON PREMIUM EROSION. BUT YES IF YOU ARE OPTIONS TRADER BE CAUTIOUS PREMIUM FRONT.

Now Lets see Bank Nifty.
Last 2 trades in Bank Nifty have ended up by hitting SL. Further to add looking at option chain data and charts we feel some downside can be expected but that may be quick flash and at every dip buying may come in. 

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

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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. HE IS ALSO CERTIFIED AS RESEARCH ANALYST FROM SEBI. FURTHER HE HAS CLEARED INVESTMENT ADVISER LEVEL - 1 FROM NISM IN 2014.