The gap was not expected but the rally was expected. Nifty did create a new high in recent times and as one would expect profit booking did come and dragged it down till 11999. Yet it closed 59 points up, an impressive rise. Also check the you tube video under the name Market Movers India with similar but slightly exhaustive content.
FII & DII data: Today both FIIs and DIIs were net Buyers. This means the Nifty’s journey towards top will continue unabated, as of now.
Option chain data: On PUT side, the highest total OI is at 11900 and highest Put writing is at 12000. There is decent Put writing at 11950 but unwinding at 11900 and below. This means that Put writers are shifting their bets on higher strikes. On CALL side, highest total OI is at 12000 and highest Call writing is at 12050 but Call writing on any strike is not impressive at all. This indicates that resistances are weak and Nifty can easily climb up.
Charts: On daily chart, Nifty opened with a gap and finished as a Doji candle with higher high, higher low and higher close. The strength of Nifty is showing on 15 min chart. After falling a bit it went up and made new high. Later when it fell, it created a selling area but to sell Nifty would be very risky with such a strong upward momentum. Buy at support as indicated with SL.
FII & DII data: Today both FIIs and DIIs were net Buyers. This means the Nifty’s journey towards top will continue unabated, as of now.
Option chain data: On PUT side, the highest total OI is at 11900 and highest Put writing is at 12000. There is decent Put writing at 11950 but unwinding at 11900 and below. This means that Put writers are shifting their bets on higher strikes. On CALL side, highest total OI is at 12000 and highest Call writing is at 12050 but Call writing on any strike is not impressive at all. This indicates that resistances are weak and Nifty can easily climb up.
Charts: On daily chart, Nifty opened with a gap and finished as a Doji candle with higher high, higher low and higher close. The strength of Nifty is showing on 15 min chart. After falling a bit it went up and made new high. Later when it fell, it created a selling area but to sell Nifty would be very risky with such a strong upward momentum. Buy at support as indicated with SL.