Nifty & Nifty Bank View for 16/01/2018

2 times in Row Nifty Bulls obliged our view and Nifty gave 200 points in just 2 sessions on 2 different occasions. 

1st time it was after 05/01/2018 trading session and in our blog post Nifty view for trading session of 08/01/2018. Quick link to that blog post is as under:- 

http://nifty50view.blogspot.in/2018/01/nifty-nifty-bank-view-for-08012018.html

So from 10558.85 (close on 05/01/2018) to 10659.15 (high on 09/01/2018) 

2nd time it was after 11/01/2018 trading session and in our blog post Nifty view for trading session of 12/01/2018. Quick link to that blog post is as under:- 

http://nifty50view.blogspot.in/2018/01/nifty-nifty-bank-view-for-11012018.html

After that during trading hours we had clearly on our Telegram Channel for next 100 points move. 

Anyway lets move further and Analyse what could be road ahead for Nifty & Nifty Bank

Nifty Spot Closed with Gains of 60 points or 0.56% at 10742 whereas Nifty Future closed at 10743 (Premium of 1 point) 

Nifty Bank Closed with Gains of 320 points or 1.24% at 26069 whereas Bank Nifty Future closed at 26045 (Discount of 24 points) 

Nifty View

Last week we had tried to predict Nifty road ahead via expected candle and today that is level is achieved. 

Lets have look at that chart first. 

Now lets have look at updated weekly chart. 

Yes with delay of 1 trading session Bulls managed to lift Nifty to expected levels. 

Now lets have look at spot Nifty daily chart. 

We can see that at higher level (near to channel pattern trendline) some some rejection /reversal came in. But still uptrend is intact which may resume in session or 2 for more upside target of 10836 (better we consider 10830-10850 zone) 

On downside 10660-10650 may act as strong support and close below 10600 may only trigger more downside. 

Nifty Bank View

We have already shared Volatility chart for BankNifty Future and as per that we were record low of last 5 years prior to Today's session but after Today session we are expecting spurt in it. 

Anyway lets move forward and study daily chart after today's session. 

(Incase if you are not able to view full image click on image to enlarge)

It is clearly visible that Nifty Bank is in new territory but more upside can only be expected if 26100 is cleared on closing basis. If that happens then more upside of 300-400 points can't be ruled out before expiry. 

Going forward still 25775-25880-25925-25880-25775 levels may act as strong support. 

Option Chain Data.

Nifty

Continuous shifting on Open Interest front is seen on PE front in this series. Huge additions on 10700 PE (2894k shares) still depicts same story of frustrated Bears. Don't get surprised if 10700 gains highest OI in 2-3 sessions. At present 10500 PE is having highest OI of 8230k shares which may act as support. 

On CE front 11000 CE is still standing strong with 4793k shares as strong resistance. 

Nifty Bank (Considering only monthly Option Chain)
At last some liquidation seen in 26000 PE. still 25000 PE is having huge OI of 871k shares. CE front Nifty Bank closed above high CE OI (Highest OI at 26000 CE of 1134 shares)

Put Call Ratio Stands at 1.61 (Over bought) for Nifty whereas for Nifty Bank it is 1.16

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Please note this blog post is for education purpose only. While utmost care is taken while writing this post but any human error cant be ruled out and we apologize for same in advance.