Hi, Today the move that I hoped in Bank NIfty (BNF) and NIfty did not happen. After breaking yesterday's Low, BNF went down further. Nifty in the end showed a lot of strength but BNF was downright weak and bearish. So what about tomorrow? Charts suggests consolidation. It is posssible that upmove that started in latter half might continue upward but today's slide did create some resistances which indices will have to fight with. I will talk about these when I give levels in the end.
Provisional figures show 1050 Crs worth FII 'Net sales' figures and 271 Crs as DII 'Net buy' figures. That explains the slide. The final figures show however net FII buying on all the three fronts Equity, Index futures and Stock futures. This shows that DIIs also participated in Selling. These facts point towards fear! Both DIIs and FIIs do not seem to be comfortable at higher levels. So which are those levels? Lets check option data for that.
NIFTY option chain showsthat on strikes 11900,11950 & 12000, approx 60 lakhs of Total OI on CALL side and CALL writing of 28 lakh contracts. On PUT side however there is unwinding on all stikes (lower and higher both) except on 11750 and 11800. On these 2 strikes, total PUT writing is approx 2.40 lakhs only. So this signals bearish sentiment. And this also shows a broad range of 11800 to 12000 for NIFTY movement. In BNF, there is fresh CALL writing at all higher strikes and fresh PUT writing at Lower strikes. But the quantum of Call writing is much more than that of PUT. Here, I would want to point out that tomorrow being weekly expiry, these figures will have to be taken with a pinch of salt.
Levels- Nifty, however strong it is, will face resistances at 11960 and 11990, which effectively means 12000 is difficult to cross. Stronger support is at 11825. BNF has support at 30,825 (20 DEMA) and 30700-30640 (support on 15 min chart) and resistances at 31260-31290 and then at around 31400. Thats all for now. Happy trading. All the best.
Provisional figures show 1050 Crs worth FII 'Net sales' figures and 271 Crs as DII 'Net buy' figures. That explains the slide. The final figures show however net FII buying on all the three fronts Equity, Index futures and Stock futures. This shows that DIIs also participated in Selling. These facts point towards fear! Both DIIs and FIIs do not seem to be comfortable at higher levels. So which are those levels? Lets check option data for that.
NIFTY option chain showsthat on strikes 11900,11950 & 12000, approx 60 lakhs of Total OI on CALL side and CALL writing of 28 lakh contracts. On PUT side however there is unwinding on all stikes (lower and higher both) except on 11750 and 11800. On these 2 strikes, total PUT writing is approx 2.40 lakhs only. So this signals bearish sentiment. And this also shows a broad range of 11800 to 12000 for NIFTY movement. In BNF, there is fresh CALL writing at all higher strikes and fresh PUT writing at Lower strikes. But the quantum of Call writing is much more than that of PUT. Here, I would want to point out that tomorrow being weekly expiry, these figures will have to be taken with a pinch of salt.
Levels- Nifty, however strong it is, will face resistances at 11960 and 11990, which effectively means 12000 is difficult to cross. Stronger support is at 11825. BNF has support at 30,825 (20 DEMA) and 30700-30640 (support on 15 min chart) and resistances at 31260-31290 and then at around 31400. Thats all for now. Happy trading. All the best.