NIFTY & BANK NIFTY VIEW FOR 31/08/2016

LAST TRADING SESSION WAS SESSION FOR WHICH WE WERE WAITING FROM VERY LONG TIME.

INFACT IN OUR LAST POST WE HAD TRIED TO EXPLAIN VIA DIFFERENT WAYS THAT MOMENTUM IS STILL BULLISH DESPITE ALL ODDS.

LETS TRY TO UNDERSTAND CHANGES IN OI DATA.

Nifty

September Series

Mammoth additions in 8600 & 8700 PE indicates frustration of Bears. Further liquidation on CE in ITM CE and not major addition in any CE till 9000 CE leads some doubt over any major upside. But overall OI in 8800 & 8900 CE is still in favor of Bulls. 

Highest OI tag is with 8500 PE & 9000 CE.

Bank Nifty 

September Series (Weekly Expiry - Immediate)

Mammoth additions in different strike prices from 19100 to 19500 PE indicates frustration of Bulls. Whereas on CE front huge liquidations can be seen. Highest OI tag shifted from 19500 to 19700 CE.

Highest OI tag is with 19000 PE & 19700 CE.

September Series (Monthly Expiry)

As we have 4 weekly expiry and then Monthly expiry is there and we have long series. This Monthly chain may not reflect true picture at present. This can be easily inferred also after yesterday's session. Though we had mammoth rally no liquidation can be seen in ITM PE also no major additions can be seen on CE front. 

Highest OI tag is with 19000 PE & 20000 CE.

NOW LETS SEE SOME IMPORTANT NIFTY RATIO

PE RATIO FOR NIFTY STANDS AT 23.97

PE RATIO FOR BANK NIFTY STANDS AT 28.83

SEPTEMBER SERIES
NIFTY PCR ON BASIS OF OI IS 1.16
BANK NIFTY PCR ON BASIS OF OI IS 0.91

FINAL CONCLUSION

Nifty & Bank Nifty
Nifty PCR is very high at present but OI at 8700 & 8800 CE indicates some more upside but if Bulls managed to cross 8800 CE then more upside can be expected.  

Now Lets see Bank Nifty.
Looking at weekly expiry 19700-19800 may act as strong resistance at present and some dip can be expecting before crossing 19700 levels. 

NIFTY

Support & Resistance levels shall be shared before market opens. 

BANK NIFTY

Support & Resistance levels shall be shared 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. HE IS ALSO CERTIFIED AS RESEARCH ANALYST FROM SEBI. FURTHER HE HAS CLEARED INVESTMENT ADVISER LEVEL - 1 FROM NISM IN 2014.