NIFTY & BANK NIFTY VIEW FOR 29/08/2016

FIRST DAY OF SERIES AND BEARS MANAGED TO GIVE FIRST BLOW...!!!

ANYWAY LETS TRY TO UNDERSTAND CHANGES IN OI DATA.

Nifty

September Series

Huge additions in nearby OTM PE (especially 8400 & 8500 PE) indicates that traders are still betting on moves below 8500 or so. PE front valuations are bit stretched at present means that they are bit overvalued. Mammoth additions can be seen in different CE strike prices from 8400 to 9000. 

Highest OI tag is with 8500 PE & 9000 CE.

Bank Nifty 

September Series (Weekly Expiry - Immediate)

Some liquidation in ITM PE strike prices gives sign of relief. Huge additions in 19000 & 19100 PE indicates base built-up at that level. If we talk about valuations then both side options are equally valued. 

Highest OI tag is with 19000 PE & 19500 CE.

September Series (Monthly Expiry)

Good additions can be seen in 18500 & 19000 PE. On CE front mammoth OI at 20000 level indicates it will be strong resistance throughout series.Right from 18500 to 20000 additions can be seen on both sides. 

Highest OI tag is with 19000 PE & 20000 CE.

NOW LETS SEE SOME IMPORTANT NIFTY RATIO

PE RATIO FOR NIFTY STANDS AT 23.62
PE RATIO FOR BANK NIFTY STANDS AT 28.79

SEPTEMBER SERIES
NIFTY PCR ON BASIS OF OI IS 1.09
BANK NIFTY PCR ON BASIS OF OI IS 0.95

FINAL CONCLUSION

Nifty & Bank Nifty
PCR is in favor of  Bears at present and we may see flashes till 8500 also in session or 2 but from that level PCR and changes in OI should be correlated with charts and then trading positions can be taken. 

Now Lets see Bank Nifty.
Bank Nifty is forming strong base at 19000 downside but at the same time 19500 is also acting as stiff resistance too. Further additions on both side of OC indicates position built-up and hence moves on basis of OC/OI is bit difficult at present. PCR is in neutral zone and but also if we correlate PCR and OI we can say that in next 2 sessions 19000 may act as strong support.

WE MAY EXIT IN NIFTY 8600 CE TODAY AND BOOK LOSS.

NIFTY

SUPPORT:- 8540-8535, 8515-8510 & 8495-8490

RESISTANCE:- 8610-8615, 8645-8650 & 8670-8675

BANK NIFTY

SUPPORT:- 19090-19080, 19015-19030 & 19000-18900

RESISTANCE:- 19240-19250, 19340-19350 & 19420-19435

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