NIFTY & BANK NIFTY VIEW FOR 06/09/2016

DAY BY DAY LIQUIDATIONS CAN BE SEEN IN ITM CE AND SIMULTANEOUSLY OVERALL OI ON PE FRONT IS GETTING STRONGER AND STRONGER. NOW ONLY THING WHICH MATTER IS WHERE PCR AND FEW OTHER TECHNICAL INDICATORS COMES TO AN AID FOR BEARS OR NOT.

LETS TRY TO UNDERSTAND CHANGES IN OI DATA.

Nifty

September Series

As hinted in opening paragraph we can see that day by day OI in CE is getting liquidated and that can be interpreted as slowly slowly exhaustion of  Bulls whereas on PE front no major liquidations can be seen even in far OTM (considered multiple strike price basis) But long time support acting 8500 PE did lost highest OI tag to 8600 PE. (So support shifted to higher level atleast at present)

Highest OI tag is with 8600 PE & 9000 CE.

Bank Nifty 

September Series (Weekly Expiry - Immediate)

Bulls are getting stronger here day by day as OI at 20000  & 20500  is almost the same. But mammoth additions on PE front is again indicating some volatile moves in coming days. 19500 PE without doubt shall act as strong base. 

Highest OI tag is with 19500 PE & 20000 CE.

September Series (Monthly Expiry)
20000 CE is having huge OI but still flashes above that level cannot be ruled out. 19500 & 19000 PE are having good OI at present and if Bank Nifty slipped below 19500 then we can see flashes upto 19100-19200 easily.

Highest OI tag is with 19000 PE & 20000 CE.

NOW LETS SEE SOME IMPORTANT NIFTY RATIO

PE RATIO FOR NIFTY STANDS AT 24.15

PE RATIO FOR BANK NIFTY STANDS AT 29.35

SEPTEMBER SERIES
NIFTY PCR ON BASIS OF OI IS 1.25
BANK NIFTY PCR ON BASIS OF OI IS 1.13

FINAL CONCLUSION

Nifty & Bank Nifty
PCR for Nifty is overbought and slowly slowly bulls are getting exhausted. 9000 CE without doubt shall act as strong resistance. But now all moves may get dependent on Bank Nifty as it is trading near to its highest OI on monthly expiry contracts. 

NIFTY

Nifty Last Close 8810
Support - 8760-8750, 8700-8690, 8665-8660 & 8630-8620
Resistance - 8845-8855 & 8990-9000

BANK NIFTY

Nifty Last Close 19883
Support - 19750-19765, 19655-19640, 19555-19530 & 19460-19440
Resistance - 19960-19985, 20080-20100 & 20180-20200

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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.