Today too, Nifty created another high and another closing high. On the other hand, Banknifty slipped. Nifty is really very strong and this comes across from all sources. FIIs and DIIs, both were net sellers today by 205 Crs and 642 Crs respectively. And yet we may wonder how nifty scaled another lifetime high? If you look at individual buy and sell figures and fall in banking stocks, it becomes clear that institutions bought some Nifty stocks but majorly sold banking stocks which resulted in Banknifty fall. Option chain shows that on PUT side, at 12300 strike, there is highest total OI (31.63 lakhs) and highest fresh Put writing (12.05 lakhs). So it is reliable support for tomorrow. On CALL side, there is interesting total OI scenario. On strikes from 12300-12500, we see total OI of more than 10 lakhs on each strike though the fresh Call writing is not impressive at all. Now why is that when Nifty is scaling new peaks everyday! We may find that answer on charts. On Nifty weekly chart we can clearly see a primary channel in which Nifty is travelling and now it is near the peak. On Daily chart, we can see another secondary channel, within that primary channel and there also, it is nearing its top resistance. For more clarity, please check my video posted on youtube under channel name Market Movers India where I have explained it in detail. The peaks are looking to coincide somewhere around 12,425. So some Call writers might be thinking that Nifty might not go past 12300 this expiry and have sold calls there. Now, it may not happen within this expiry but some traders do believe so. On 15 min chart, I have marked a buying area and a support for Nifty where one can buy. Please do not attempt to sell Nifty even if it reaches 12400 tomorrow. The present strength in upward momentum is amazing.
All the best. Happy trading.
All the best. Happy trading.