Nifty today, cannot be studied in isolation because friday's move in Nifty was pushed by Banknifty (BNF). So on charts Nifty finished as a green base-like candle with Lower high and lower low than all previous days' candles. But BNF is showing a perfect reversal- ready pattern- A sustained fall, stopped by 2 base candles and then a solid bullish green candle ( Low very near to open and high very near to close, signifying that rise was confident) with volume more than past 13 days' individual volumes. So now what happens on Monday with Nifty heading south and BNF heading north? Let's find out-
1) Provisional data shows that FIIs were net sellers by 1503 Crs and DIIs were net Buyers by 1917 Crs. Final data shows that FIIs were NET BUYERS in Equity by 815 Crs, NET SELLERS in Index futures by 1178 Crs and NET BUYERS in Stock futures by 418 Crs. So we see, FIIs/FPIs did some buying in last so many days. But this doesn't mean that they have stopped selling as seen by selling in index futures. So expect this on Monday as well.
2) In Nifty option Chain, on PUT side we see highest total OI of 21.59 lakhs (impressive) and highest fresh Put writing of 11.53 lakhs (impresive again) on 11200 strike. The second highest total OI and fresh PUT writing is at 11100 strike. This shows that some PUT writers feel that 11200 can be breached. On CALL side,highest total OI of 16.45 lakhs (less that that at PUT side) and fresh highest Call writing of 4.84 lakhs (much less than that on PUT side) is seen at 11300 strike. There is good total OI on the strikes of 11350 & 11400. OK Call writing is seen at 11400 strike too. So resistances are at 11300 & 11400 which means broad range again is 11200 to 11400. On charts, lets fine tune it.
3) On Nifty daily chart, RSI has improved and MACD also shows less divergence but mind you this can easily get reversed. So in a nutshell, tomorrow BNF can pull Nifty up or Nifty can drag BNF a bit down. Both possibilities are being seen. As for our range, I had written on Thursday that I expected R1 to be broken and R2 holds. My contention still stands. But yesterday's move has created a support (S1) on charts. so our range now looks like 11230 to 11355. one can buy at S1 but with strict SL of around 25 points and book target at around 75 points. Selling price with target and SL is shown on chart.
Happy trading. All the best.
1) Provisional data shows that FIIs were net sellers by 1503 Crs and DIIs were net Buyers by 1917 Crs. Final data shows that FIIs were NET BUYERS in Equity by 815 Crs, NET SELLERS in Index futures by 1178 Crs and NET BUYERS in Stock futures by 418 Crs. So we see, FIIs/FPIs did some buying in last so many days. But this doesn't mean that they have stopped selling as seen by selling in index futures. So expect this on Monday as well.
2) In Nifty option Chain, on PUT side we see highest total OI of 21.59 lakhs (impressive) and highest fresh Put writing of 11.53 lakhs (impresive again) on 11200 strike. The second highest total OI and fresh PUT writing is at 11100 strike. This shows that some PUT writers feel that 11200 can be breached. On CALL side,highest total OI of 16.45 lakhs (less that that at PUT side) and fresh highest Call writing of 4.84 lakhs (much less than that on PUT side) is seen at 11300 strike. There is good total OI on the strikes of 11350 & 11400. OK Call writing is seen at 11400 strike too. So resistances are at 11300 & 11400 which means broad range again is 11200 to 11400. On charts, lets fine tune it.
3) On Nifty daily chart, RSI has improved and MACD also shows less divergence but mind you this can easily get reversed. So in a nutshell, tomorrow BNF can pull Nifty up or Nifty can drag BNF a bit down. Both possibilities are being seen. As for our range, I had written on Thursday that I expected R1 to be broken and R2 holds. My contention still stands. But yesterday's move has created a support (S1) on charts. so our range now looks like 11230 to 11355. one can buy at S1 but with strict SL of around 25 points and book target at around 75 points. Selling price with target and SL is shown on chart.
Happy trading. All the best.