Hi friends, let's determine direction first and then we will look for trading levels.
First data that I will refer to is FII and DII Buy/ Sell figures as given NSE. Why is it important? Because for past 2 days, FIIs and DIIs were net Sellers and that stemmed the fall. Today's provisional figures show net buying by both FIIs (+216.2 Crores) and DIIs (+170.62 Cr). But then why was there fall in BNF or not rise in Nifty? Let's dig deeper! The final figures release show this- FIIs were Net sellers in Equity segment by 341.54 Cr; Net Sellers in Index futures by 287.28 Crs(see the reason) and Net buyers in stock futures by 307.19 Crs. That explains it. Lets get to option Chain analysis.
Highest total OI on CALL side is 9,50,180 contracts at strike of 31500. Highest fresh Call writing is also at same stike of 4,69,280 contracts. So this looks like convincing resistance. Highest Total OI on PUT side is of 5,36,460 at strike of 30500. Highest fresh PUT writing, however, was at 30800 of 1,02,540 contracts. Notice that Total OI and writing is both weaker on PUT side. Now if we add CALL OI from 31000 to 31500 (ATM to Highest OI OTM) it is 27,93,760 and total call writing figure is at 12,54,480. Similarly adding PUT OI from 31100 to 30500, total accumulated OI adds up to 18,19,500 (much less than 28 lakhs approx.) contracts and total PUT writing at 4,52,360 ( almost 1/3rd of 12.5 lakhs). So that seals it. All the 3 pointers ( FII figures, Higest OI and wirting and Total build up of contracts) suggest a bearish or downward trend. Now let's get to charts.
All the resistances and supports remain almost same. So short it when it reaches R2 (31356), SL just above 31450 and target anywhere near31000.
While buying, be careful not to buy at R/S (black line). It will only act as support if price is higher and as Resistance if price is lower only for brief period. Safe buy is at 20 DEMA line at 30766, SL below 30700 and Target at 31000. That's it for now. All the best, happy trading!
First data that I will refer to is FII and DII Buy/ Sell figures as given NSE. Why is it important? Because for past 2 days, FIIs and DIIs were net Sellers and that stemmed the fall. Today's provisional figures show net buying by both FIIs (+216.2 Crores) and DIIs (+170.62 Cr). But then why was there fall in BNF or not rise in Nifty? Let's dig deeper! The final figures release show this- FIIs were Net sellers in Equity segment by 341.54 Cr; Net Sellers in Index futures by 287.28 Crs(see the reason) and Net buyers in stock futures by 307.19 Crs. That explains it. Lets get to option Chain analysis.
Highest total OI on CALL side is 9,50,180 contracts at strike of 31500. Highest fresh Call writing is also at same stike of 4,69,280 contracts. So this looks like convincing resistance. Highest Total OI on PUT side is of 5,36,460 at strike of 30500. Highest fresh PUT writing, however, was at 30800 of 1,02,540 contracts. Notice that Total OI and writing is both weaker on PUT side. Now if we add CALL OI from 31000 to 31500 (ATM to Highest OI OTM) it is 27,93,760 and total call writing figure is at 12,54,480. Similarly adding PUT OI from 31100 to 30500, total accumulated OI adds up to 18,19,500 (much less than 28 lakhs approx.) contracts and total PUT writing at 4,52,360 ( almost 1/3rd of 12.5 lakhs). So that seals it. All the 3 pointers ( FII figures, Higest OI and wirting and Total build up of contracts) suggest a bearish or downward trend. Now let's get to charts.
All the resistances and supports remain almost same. So short it when it reaches R2 (31356), SL just above 31450 and target anywhere near31000.
While buying, be careful not to buy at R/S (black line). It will only act as support if price is higher and as Resistance if price is lower only for brief period. Safe buy is at 20 DEMA line at 30766, SL below 30700 and Target at 31000. That's it for now. All the best, happy trading!