Please read this post along with my post on Nifty to get complete perspective of tomorrow's market moves. Just to summarize Nifty and BNF staged a hope rally on friday on the hope that FM may announce something good for industry in general and markets. Nothing happened and hence I am of the view that some fall in Nifty and BNF is expected tomorrow. But for index traders, there could be a dilemma as BNF is showing strength with good buying areas and Nifty not as strong. Since both well influence each other, tomorrow's movement could be in tight range.
1) Option chain data: On PUT side, highest total OI and writing actually is seen at 26500 which is too far away (CMP-27248). Near ATM, highest OI
(3.91 lakhs) is at 27000 with highest fresh Put writing (1.54 lakhs) too. 2nd highest writing and Oi is then at 26800. On CALL side, highest total OI is at 28000 strike, which is still very far away, with quite low Call writing. Near ATM, highest total OI (3.74 lakhs) is at 27500 but with negligible Call writing (3,420 contracts only)! So bank nifty is clearly showing some strength. On charts too this is visible.
2) Charts: On Daily chart, BNF finished as very strong green candle with higher high and higher low and hence we can see some good buying areas on 15 min chart. But since the predominant trend is still negatve, I will advise to take trade at lower or 2nd buying area with levels mentioned on chart. I am not able to spot any good selling areas in BNF so shorts will have to be taken as per live market movement.
All the best. Happy trading.
DISCLAIMER: I am short on Banknifty.
1) Option chain data: On PUT side, highest total OI and writing actually is seen at 26500 which is too far away (CMP-27248). Near ATM, highest OI
(3.91 lakhs) is at 27000 with highest fresh Put writing (1.54 lakhs) too. 2nd highest writing and Oi is then at 26800. On CALL side, highest total OI is at 28000 strike, which is still very far away, with quite low Call writing. Near ATM, highest total OI (3.74 lakhs) is at 27500 but with negligible Call writing (3,420 contracts only)! So bank nifty is clearly showing some strength. On charts too this is visible.
2) Charts: On Daily chart, BNF finished as very strong green candle with higher high and higher low and hence we can see some good buying areas on 15 min chart. But since the predominant trend is still negatve, I will advise to take trade at lower or 2nd buying area with levels mentioned on chart. I am not able to spot any good selling areas in BNF so shorts will have to be taken as per live market movement.
All the best. Happy trading.
DISCLAIMER: I am short on Banknifty.