Please read this in conjunction with my post on NIfty for in-depth understanding. The crux of the matter and approach is that it still is a market of 'Sell on rise'! The FIIs are Selling in huge numbers everyday.
The option chain in BNF : On PUT side, the appreciable or OK Put writing is seen on the strikes of 28000, 27900 & 27800. The total OI (3.51 lakhs) and fresh Put writing (1.94 lakhs) is highest on the strike of 28000. At ATM strike of 28200 option writing and total OI both are very less. So one can expect short term support at 28000, i.e for tomorrow. On CALL side, the highest total OI (5.98 lakhs) and highest fresh Call writing (1.91 lakhs) is seen at very far strike away from ATM, at 29000! So does it mean that BNF has the potential to rise till 29000 ? No. It only means that OI is not yet populated on call side or in plain simple terms traders have not taken any short-side positions. Why? Two reasons- One, during weekend, traders do not want to keep their positions open since anything can happen ina 2-day span. Second, as news was floating in, the rally in NIfty during latter half on friday was due to the news that on PMO intervention, Finance ministry may do something to relieve the aggrieved FIIs/FPIs who due to increased tax surcharge are on a selling spree. So if that happens, a temporary pull up may be seen in indices. But till then, it is a selling market.
On daily chart BNF made a doji candle but with lower low and lower high. The RSI is at 25.67 (in oversold area) and if something happens in Nifty, BNF may also pull-up. But otherwise, in absence of any positive fundamental triggers, look to short BNF. The shorting levels are given on chart.
All the best, happy trading.
The option chain in BNF : On PUT side, the appreciable or OK Put writing is seen on the strikes of 28000, 27900 & 27800. The total OI (3.51 lakhs) and fresh Put writing (1.94 lakhs) is highest on the strike of 28000. At ATM strike of 28200 option writing and total OI both are very less. So one can expect short term support at 28000, i.e for tomorrow. On CALL side, the highest total OI (5.98 lakhs) and highest fresh Call writing (1.91 lakhs) is seen at very far strike away from ATM, at 29000! So does it mean that BNF has the potential to rise till 29000 ? No. It only means that OI is not yet populated on call side or in plain simple terms traders have not taken any short-side positions. Why? Two reasons- One, during weekend, traders do not want to keep their positions open since anything can happen ina 2-day span. Second, as news was floating in, the rally in NIfty during latter half on friday was due to the news that on PMO intervention, Finance ministry may do something to relieve the aggrieved FIIs/FPIs who due to increased tax surcharge are on a selling spree. So if that happens, a temporary pull up may be seen in indices. But till then, it is a selling market.
On daily chart BNF made a doji candle but with lower low and lower high. The RSI is at 25.67 (in oversold area) and if something happens in Nifty, BNF may also pull-up. But otherwise, in absence of any positive fundamental triggers, look to short BNF. The shorting levels are given on chart.
All the best, happy trading.