NIFTY
looking at the price action Nifty is showing signs of profit booking
and todays Open interest data shows signs of bearishness for tomorrow
european markets where in a free fall today even though it made a mild pullback later.
Americal markets are down and showing mild sign of pullback as well.
Few points from Data
- Fiis exited shorts and longs but majorly the short positions on index.
Fiis net added shorts on stock futures today and clients added net longs
- Fiis have written calls while Clients are heavily long on calls
- Fiis have added put longs while clients are heavily short on puts.
All this data and global market sentiment shows tomorrow we can see a correction in the market. The important levels for me on the downside are marked on the chart.
If market opens flat or gap down tomorrow and moves below 15000 all the clients who had written 15000 puts will go for a cover and that can propel markets further down. 15000 has good put writting.
market is in a buy on dip structure and bulls who have missed the rally will be trying to enter the dip at 14960-14900 range.
14900 has got significant put writting and we witnessed 15100 straddle being build in the market 2 days back who wants the market to expire above 14900 levels to be profitable.
So clubbing all these i think the market if goes down will take support at 14960-14900 levels. and further fall from there is highly unlikely tomorrow.
Comment:
market went below 15000 and took support at 14960 which was marked yesterday . The level was held for a major part of the day and when that level was breached Nifty went till 14900 and the importance of 14900 was discussed in yesterday's analysis.
14960 is marked yesterday