NIFTY for 12th December

A sharp run up in indices after 2.40 pm propped Nifty by almost 90 points and closed above 11900 level. At around 2.35 pm when Nifty was at low of 11832, Banknifty was at around 31000. So both were at their crucial supports and hence, I think, buying emerged in indices. Please check my video posted on youtube under channel name Market Movers India for slightly more content. Both FIIs and DIIs were net buyers today, which suggests that both entities participated in last minute buying. Yesterday’s final data for FIIs show that FIIs were net sellers in all three segments Equity, Index futures and stock futures. What this combined data suggests is that whenever FIIs spot value buy, they will lap it up.
Option chain, therefore, show decent Put writing at three strikes of 11800, 11850 & 11900 but highest total OI on PUT side is at 11900. Since Nifty CMP is just 10 points above 11900 strike, accepting it as support is slightly risky. So I will go for 11850 as better support. Even charts suggest that. On CALL side, 12000 has highest total OI which means it can be taken as reliable resistance. Again, that is what is reflecting on charts as well. On nifty’s 15 min chart, buying and selling levels are marked which do match our findings from option chain data.
All the best. Happy trading.