Nifty continued its downward slide today too falling by around 63 points and closing at around 12107 approaching the lower limit of secondary channel that I have been talking about in last few posts & videos. Please check my video posted on youtube under channel name Market Movers India for slightly more analytical content. Today’s provisional figures show that FIIs and DIIs both were Net Sellers by 176 Crs and 326 Crs, respectively. Yesterday’s final figures show that FIIs were net Sellers in Index and stock futures (552 Cr and 1018 Crs, respectively) and net buyers in Equity (1717 Crs). All very high figures I would say!
The option chain reveals that there is practically no appreciable put writing on any strike which means that Put writers are not confident of any support or any strike price as support. Highest Put writing is only of 3.49 Lakhs at 12050 and highest total OI (of 15.28 lakhs) is at 12000. So if at all we are looking for support, 12050 and 12000, both should be considered. On Call side we see impressive Call writing at strikes 12100, 12150 & 12200. Out of three, 12150 looks promising since it has 2nd highest total OI (17.91 Lakhs) and highest Call writing (14.93 lakhs). So that would be my resistance tomorrow. On daily chart, Nifty today made a strong red or bearish candle with LH and LL just above lower limit of secondary channel that I have marked and just above 50 DEMA too. As for levels marked on 15 min chart, avoid fresh buying for now. If you are already long on Nifty one can book profit at R1 and start fresh selling at Selling area shown. However, do that if it happens in first half. In second half, nifty can go wild so avoid contra-trade.
All the best. Happy trading.
The option chain reveals that there is practically no appreciable put writing on any strike which means that Put writers are not confident of any support or any strike price as support. Highest Put writing is only of 3.49 Lakhs at 12050 and highest total OI (of 15.28 lakhs) is at 12000. So if at all we are looking for support, 12050 and 12000, both should be considered. On Call side we see impressive Call writing at strikes 12100, 12150 & 12200. Out of three, 12150 looks promising since it has 2nd highest total OI (17.91 Lakhs) and highest Call writing (14.93 lakhs). So that would be my resistance tomorrow. On daily chart, Nifty today made a strong red or bearish candle with LH and LL just above lower limit of secondary channel that I have marked and just above 50 DEMA too. As for levels marked on 15 min chart, avoid fresh buying for now. If you are already long on Nifty one can book profit at R1 and start fresh selling at Selling area shown. However, do that if it happens in first half. In second half, nifty can go wild so avoid contra-trade.
All the best. Happy trading.