Even the biggest pessimist on Indian economy wouldn't have guessed the severity of today's fall! The signals were better than day before yesterday. Oil price in control, Rupee appreciated, Fed rate cut by 25 bps and still Nifty falls by around 135 points! Let alone recovery, atleast the stop in fall was expected. So tonight also signals are good- Rupee closed at 71.325, up by 9 paise; Brent crude quoting at around $63.5 per barrel in world markets and DJIA at the moment is up by 66 points. And yet it is possible that we fall tomorrow again! The extent or lower limit is just beyond our comprehension it seems. Lets see what other data conveys:
1) FII & DII data: Provisional figures show that FIIs were Net Sellers by 892 Crs and DIIs were Net Buyers by 646 Crs. Final figures for Wednesday show that FIIs were net sellers on Wednesday by 933 Crs but Net buyers in Index and stock futures by 542 Crs and 601 Crs. Selling in Equity continues and trading bets are still being taken by FIIs, it seems.
2) Option Chain data: Expiry, 26th September; On PUT side, we have interesting set of data. The highest total OI (34.93 lakhs) is at 10800 ( CMP is 10704.8, almost 95 points below 10800 strike) which has Put unwinding and highest fresh Put writing (6.69 lakhs) is at 10700 strike. The 2nd highest total OI is at 10600. As per OI data, support is inconclusive. On CALL side, highest total OI (44.77 lakhs) is at 11000 and highest fresh Call writing (19.51 lakhs) is at 10800 which has 3rd highest total OI (28.91 lakhs). So for me, even 10800 isformidable resistance. So as is evident, due to highest total OI, 10800 is tussle point between bulls and bears.
3) Charts: On charts, Nifty finished as a strong red candle with lower high and lower low than yesterday's candle. Because of the steep fall right in morning hours, a Selling area got created which is marked on chart. If Nifty rises till that level, one can short with good RR.
All the best. Happy trading.
1) FII & DII data: Provisional figures show that FIIs were Net Sellers by 892 Crs and DIIs were Net Buyers by 646 Crs. Final figures for Wednesday show that FIIs were net sellers on Wednesday by 933 Crs but Net buyers in Index and stock futures by 542 Crs and 601 Crs. Selling in Equity continues and trading bets are still being taken by FIIs, it seems.
2) Option Chain data: Expiry, 26th September; On PUT side, we have interesting set of data. The highest total OI (34.93 lakhs) is at 10800 ( CMP is 10704.8, almost 95 points below 10800 strike) which has Put unwinding and highest fresh Put writing (6.69 lakhs) is at 10700 strike. The 2nd highest total OI is at 10600. As per OI data, support is inconclusive. On CALL side, highest total OI (44.77 lakhs) is at 11000 and highest fresh Call writing (19.51 lakhs) is at 10800 which has 3rd highest total OI (28.91 lakhs). So for me, even 10800 isformidable resistance. So as is evident, due to highest total OI, 10800 is tussle point between bulls and bears.
3) Charts: On charts, Nifty finished as a strong red candle with lower high and lower low than yesterday's candle. Because of the steep fall right in morning hours, a Selling area got created which is marked on chart. If Nifty rises till that level, one can short with good RR.
All the best. Happy trading.