Nifty is trading in inclining channel and price action now reached at lower band of inclining channel. At the same time RSI was also trading in a channel but RSI broke the lower band of channel..... I am expecting 9350 as my near term target.... your view are welcome......
Trade active
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Nifty has clearly broken channel with strong bear candle. Further weakness is expected.
Trade active
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Nifty formed bearish pattern (inverted hammer) on daily chart which indicates further weakness.
Comments
DSKF16
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Mirror of Nifty Spot is NIFTY Fut.
If we consider OI of NIFTY Option of JULY Series (as Jun Series Expires shortly),
Scenario is: for CALL Option Addition / REDUCTION
NIFTY 9900 CE has seen the Max OI Addition of 342450 (Total OI: 1499925). Followed by
NIFTY 9600 CE has seen the Max OI Addition of 288675 (Total OI: 1226925). Followed by
NIFTY 9800 CE has seen the Max OI Addition of 162900 (Total OI: 1816200)
& NIFTY 10100 CE has seen Max OI REDUCTION of -9300 (Total OI: 565050)
& For PUT Option Addition / REDUCTION:
NIFTY 9400 PE has seen the Max OI Addition of 727200 (Total OI: 3044700). Followed by
NIFTY 9300 PE has seen the Max OI Addition of 231150 (Total OI: 1748925). Followed by
NIFTY 9500 PE has seen the Max OI Addition of 106350 (Total OI: 1308825).
Till NOW not witnessing much more Downside.
Significantly NIFTY 9700 PE HAS SEEN Max OI REDUCTION of -88,350 (Total OI: 567825).
Thought about JULY Series NIFTY 9700PE. It is ITM in nature. Who Covered & why?
pravinpatil26
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@DSKF16, I think those puts shorts are covered by clients.... we can say it as a clients were in fear to see nifty fall below 9600...
DSKF16
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@pravinpatil26, Normal psychology in option market is retailers always LONG Option (Either it is CALL or PUT), Because To LONG Option needs Premium, where to SHORT Needs Margin.
pravinpatil26
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@DSKF16, you are right.... so second option might be FIIs covered put shorts for profit booking.... anyways let us wait and see what happens to nifty...
DSKF16
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@pravinpatil26, If FII Covered Put, means Price of PUT is in Correction. Till now RENKO Chart does not suggest so (i.e Down TREND)
If we consider OI of NIFTY Option of JULY Series (as Jun Series Expires shortly),
Scenario is: for CALL Option Addition / REDUCTION
NIFTY 9900 CE has seen the Max OI Addition of 342450 (Total OI: 1499925). Followed by
NIFTY 9600 CE has seen the Max OI Addition of 288675 (Total OI: 1226925). Followed by
NIFTY 9800 CE has seen the Max OI Addition of 162900 (Total OI: 1816200)
& NIFTY 10100 CE has seen Max OI REDUCTION of -9300 (Total OI: 565050)
& For PUT Option Addition / REDUCTION:
NIFTY 9400 PE has seen the Max OI Addition of 727200 (Total OI: 3044700). Followed by
NIFTY 9300 PE has seen the Max OI Addition of 231150 (Total OI: 1748925). Followed by
NIFTY 9500 PE has seen the Max OI Addition of 106350 (Total OI: 1308825).
Till NOW not witnessing much more Downside.
Significantly NIFTY 9700 PE HAS SEEN Max OI REDUCTION of -88,350 (Total OI: 567825).
Thought about JULY Series NIFTY 9700PE. It is ITM in nature. Who Covered & why?