Please read this post along with that on Nifty to get complete perspective.
Today was one such rare day when all 12 component banks of Banknifty (BNF) ended up in red. Only HDFC bank after final adjustment at the end of market close (and adjusting for 1:2 split) ended up marginally above yesterday's close. Such was the negative breadth in BNF as well.
1) Option chain data: Just like in Nifty, OC data on PUT side is scattered and inconclusive. Highest total OI (5.51 lakhs) ,on Put side, is on 27000 strike which has fresh unwinding (-43,460) and highest fresh Put writing (95,920 contracts) is at 26500 which has 3rd highest total OI (3.21 lakhs). One cannot decide on a reliable support with this data. On CALL side, highest total OI (5.81 lakhs) and highest fresh Call writing (3.97 lakhs) is at 27000 strike which is clearly above all other strikes. So 27000 will pose formidable resistance.
2) Charts: BNF finished as strong red candle with lower low and lower high as compared to yesterday's candle. The low made today is equal to that made on 4th September, after which BNF rallied up a bit. So there is some hope if today's low is not broken. A reliable selling area which was created due to steep fall this morning is marked for shorting on 15 min chart.
All the best. Happy trading.
Today was one such rare day when all 12 component banks of Banknifty (BNF) ended up in red. Only HDFC bank after final adjustment at the end of market close (and adjusting for 1:2 split) ended up marginally above yesterday's close. Such was the negative breadth in BNF as well.
1) Option chain data: Just like in Nifty, OC data on PUT side is scattered and inconclusive. Highest total OI (5.51 lakhs) ,on Put side, is on 27000 strike which has fresh unwinding (-43,460) and highest fresh Put writing (95,920 contracts) is at 26500 which has 3rd highest total OI (3.21 lakhs). One cannot decide on a reliable support with this data. On CALL side, highest total OI (5.81 lakhs) and highest fresh Call writing (3.97 lakhs) is at 27000 strike which is clearly above all other strikes. So 27000 will pose formidable resistance.
2) Charts: BNF finished as strong red candle with lower low and lower high as compared to yesterday's candle. The low made today is equal to that made on 4th September, after which BNF rallied up a bit. So there is some hope if today's low is not broken. A reliable selling area which was created due to steep fall this morning is marked for shorting on 15 min chart.
All the best. Happy trading.