On Friday, both Nifty and Banknifty dropped convincingly. What does that mean? Check open prices and high prices. Both have open price very near to high made that day and low very near to closing price. Nifty fell on Thursday too. So does it mean that Nifty is on downswing? Please check my video posted on youtube under name Market Movers India for slightly more but similar content. Let’s check what other usual data points indicate.
FII & DII data: According to provisional figures released on Friday, evening, FIIs bought shares worth 306 Crs and DIIs sold shares worth 177 Crs. Thursday’s final figures show that FIIs bought massive quantity in equity (around 5000 Crs) but were Net Sellers in index and stock futures. This might explain why we are seeing Nifty and Banknifty fall.
Option Chain data: At 11900 strike price there is clear tug-of-war. On PUT side, highest OI is at 11900 and highest Put writing is seen at 11750 (only 1.90 lakhs). On strikes 12100,12000, 11900, 11800 & 11700 there was Put unwinding. This shows Put writers meaning bulls are losing confidence. On CALL side, highest total OI (48.72 lakhs) is at 12000 but fresh highest Call writing (11.89 lakhs) is at 11900. This clearly means that some even think expiry above 11900 is doubtful. Therefore to be on safe side we take tomorrow’s trading bracket as 11850 and 11950.
Charts: Nifty again made a strong bearish candle on Friday (after thursday) with open price nearly equal to high. It fell by 54 points to close at 11914, just above 11900. On charts a selling area was created by that fall which is marked on 15 min chart. A support is also there near 11867 where buying can be done but do it with strict SL since Nifty might go down further.
All the best. Happy trading.
FII & DII data: According to provisional figures released on Friday, evening, FIIs bought shares worth 306 Crs and DIIs sold shares worth 177 Crs. Thursday’s final figures show that FIIs bought massive quantity in equity (around 5000 Crs) but were Net Sellers in index and stock futures. This might explain why we are seeing Nifty and Banknifty fall.
Option Chain data: At 11900 strike price there is clear tug-of-war. On PUT side, highest OI is at 11900 and highest Put writing is seen at 11750 (only 1.90 lakhs). On strikes 12100,12000, 11900, 11800 & 11700 there was Put unwinding. This shows Put writers meaning bulls are losing confidence. On CALL side, highest total OI (48.72 lakhs) is at 12000 but fresh highest Call writing (11.89 lakhs) is at 11900. This clearly means that some even think expiry above 11900 is doubtful. Therefore to be on safe side we take tomorrow’s trading bracket as 11850 and 11950.
Charts: Nifty again made a strong bearish candle on Friday (after thursday) with open price nearly equal to high. It fell by 54 points to close at 11914, just above 11900. On charts a selling area was created by that fall which is marked on 15 min chart. A support is also there near 11867 where buying can be done but do it with strict SL since Nifty might go down further.
All the best. Happy trading.