Today's move was unexpected and the extent to which it went up was also surprising. So you have a bullish Candle on Nifty daily chart with higher high and higher low after 13 trading sessions! But more about charts later. First FII and DII data.
1) Provisional data shows that FIIs were again today Net sellers by 2108 Crs and DIIs were net buyers by 2289 Crs. Final FII data show that FIIs were Net Sellers in Equity by 2118 Crs and in index futures by 1155 Crs, But Net Buyers in Stock futures by around 1222 Crs. So pattern is still the same. FIIs are selling in Cash segment but value picking stocks. Again the quantum of DII buying is also lower in absolute terms as compared with FII Selling, as per provisional data. But then it still shot indices up!
2) Option chain data- On PUT side, highest total OI is at 10800 (17.45 lakhs) but highest Put writing is at 10700 (5.36 lakhs). At ATM strike of 10900, total OI is 14.18 lakhs and fresh Put writing is of 5.22 lakhs (fairly decent). So 10900 looks as OK support, as of now.
On CALL side, highest total OI (26.73 lakhs) is at 11200 and highest fresh Call writing ( only 2.63 lakhs) is at 11050. Strange! Low build up and strike price also. Looks like something is wrong. Lets look at charts.
3) On daily chart, Nifty finished with strong green candle giving higher high and higher low after 13 trading sessions. I am repeating this because after 13 falls if you generate a big green candle, next day some correction is most likely to happen. Now, here the range becomes important. Today's high of 11018.55 will be a crucial resistance and yesterday's low of 10782.6 will be a crucial support. Why? I had written yesterday why due to 3 reasons on weekly chart, Nifty bounced back. If Nifty breaks upper limit, we may see an upmove after tomorrow too. If we break lower limit Selling will also continue. What I see on charts, however is this- due to preempting of rate cut by RBI, which will be announced tomorrow, today buyers bought. Tomorrow if the rate cut is more than 25 basis points, then upmove might happen but if rate cut is 25 bps or lower, Nifty might fall. The forming of a Red candle albeit with higher high and higher low is anticipated. So take trades at limits for good RR. PUT SL, since due to MPC announcement session could be volatile.
All the best. Happy trading.
1) Provisional data shows that FIIs were again today Net sellers by 2108 Crs and DIIs were net buyers by 2289 Crs. Final FII data show that FIIs were Net Sellers in Equity by 2118 Crs and in index futures by 1155 Crs, But Net Buyers in Stock futures by around 1222 Crs. So pattern is still the same. FIIs are selling in Cash segment but value picking stocks. Again the quantum of DII buying is also lower in absolute terms as compared with FII Selling, as per provisional data. But then it still shot indices up!
2) Option chain data- On PUT side, highest total OI is at 10800 (17.45 lakhs) but highest Put writing is at 10700 (5.36 lakhs). At ATM strike of 10900, total OI is 14.18 lakhs and fresh Put writing is of 5.22 lakhs (fairly decent). So 10900 looks as OK support, as of now.
On CALL side, highest total OI (26.73 lakhs) is at 11200 and highest fresh Call writing ( only 2.63 lakhs) is at 11050. Strange! Low build up and strike price also. Looks like something is wrong. Lets look at charts.
3) On daily chart, Nifty finished with strong green candle giving higher high and higher low after 13 trading sessions. I am repeating this because after 13 falls if you generate a big green candle, next day some correction is most likely to happen. Now, here the range becomes important. Today's high of 11018.55 will be a crucial resistance and yesterday's low of 10782.6 will be a crucial support. Why? I had written yesterday why due to 3 reasons on weekly chart, Nifty bounced back. If Nifty breaks upper limit, we may see an upmove after tomorrow too. If we break lower limit Selling will also continue. What I see on charts, however is this- due to preempting of rate cut by RBI, which will be announced tomorrow, today buyers bought. Tomorrow if the rate cut is more than 25 basis points, then upmove might happen but if rate cut is 25 bps or lower, Nifty might fall. The forming of a Red candle albeit with higher high and higher low is anticipated. So take trades at limits for good RR. PUT SL, since due to MPC announcement session could be volatile.
All the best. Happy trading.