Please read this post along with my post on NIFTY to get complete idea of market moves. Bank Nifty fell significantly today and in a rare case all 12 constituent-banks registered decline- that too by more than 1%, including 3 PSU banks! Such was the deep fall that BNF never really showed any signs of recovery. So what do we see tomorrow?
1) Option Chain data: On PUT side, the highest total outstanding OI (3.75 lakhs) is at 26500 strike with very low but 2nd highest fresh Put writing (100.28 lakhs) near ATM strikes (CMP-26824). Highest fresh Put writing (1.19 lakhs) across all strikes is at 26000 strike which is very far right now. Near ATM, highest PUT writing (1.15 lakhs) was seen at 26400 strike. There is Put unwinding starting from 27000 strike and above that. On CALL side, there is good OI build-up at and all atrikes above 27000. The total highest OI (5.16 lakhs) and highest Call writing (4.30 lakhs) both, are seen at 27000 strikes, near ATM strikes. Otherwise total highest OI and highest fresh Call writing across all strikes is seen at 27500 strike which is very far from CMP. So for tomorrow 27000 looks Ok resistance and 26500 looks Ok support too.
3) Charts- on daily chart, BNF made a strong red candle with lower low and lower high. I had written yesterday that this was a strong possibility due to negative news and pattern on chart till yesterday. However, after massive fall today, chances are that we might see some consolidation. DJIA currently is 360 points down. This global weakness will spill over to our matkets as well. So after a gap down openning, we might go up. so do not short. Short at levels mentioned on 15 min chart as, to me, those were safe shorting levels.
ALL the best. Happy trading.
1) Option Chain data: On PUT side, the highest total outstanding OI (3.75 lakhs) is at 26500 strike with very low but 2nd highest fresh Put writing (100.28 lakhs) near ATM strikes (CMP-26824). Highest fresh Put writing (1.19 lakhs) across all strikes is at 26000 strike which is very far right now. Near ATM, highest PUT writing (1.15 lakhs) was seen at 26400 strike. There is Put unwinding starting from 27000 strike and above that. On CALL side, there is good OI build-up at and all atrikes above 27000. The total highest OI (5.16 lakhs) and highest Call writing (4.30 lakhs) both, are seen at 27000 strikes, near ATM strikes. Otherwise total highest OI and highest fresh Call writing across all strikes is seen at 27500 strike which is very far from CMP. So for tomorrow 27000 looks Ok resistance and 26500 looks Ok support too.
3) Charts- on daily chart, BNF made a strong red candle with lower low and lower high. I had written yesterday that this was a strong possibility due to negative news and pattern on chart till yesterday. However, after massive fall today, chances are that we might see some consolidation. DJIA currently is 360 points down. This global weakness will spill over to our matkets as well. So after a gap down openning, we might go up. so do not short. Short at levels mentioned on 15 min chart as, to me, those were safe shorting levels.
ALL the best. Happy trading.