The strength in Nifty was there to see today. I am talking about strength in Nifty and not in Indian stock markets or in economy. Please check my video posted on youtube under name Market Movers India for slightly more but similar content. Nifty, Banknifty and Sensex, but, are rallying on a different plane. Nifty traded in a very narrow range with very less volume but it didn’t go below 12050, a sign of strength. Let’s check other usual data.
1) FII & DII data: FIIs and DIIs (for a change) both were Net buyers by 43 Crs and 440 Crs approximately. Figures are on lower side. The final FII figures for yesterday, i.e.Tuesday show that FIIs were Net buyers in Equity (4516 Crs- too huge a buying) and in index futures (3934 Crs- again very huge net buying figure) but Net Sellers in stock futures (777 Crs). And yet you may say why Nifty fell yesterday? But Banknifty did make its next lifetime high in those very times- rally in second half. So it is possible that all that buying went into buying Banking stocks.
2) Option chain data: On PUT side too we see confidence of Put writers. Highest total OI is at 12000 but there is fresh Put unwinding on that strike. What does it mean? The chances are that some put writers might have shifted their writing on higher strikes because highest Put writing is seen at 12100. On CALL side, frankly there is no resistance worth stopping Nifty bandwagon, as of now at least. The highest total OI is at 12200 and highest writing is at 12500 which is too far. So Nifty does not have any effective resistance. Somehow I see overconfidence more that confidence and tomorrow being expiry, wild moves are expected.
3) Charts: On daily chart, Nifty finished as a small green candle with higher low and lower high. What was notable today is that Nifty just once went down and made a low of 12055 (meaning didn’t even touch 12050) and went up and created new intra-day high. That is the strength I was talking about. On 15 min chart, I have marked a buying area where Nifty can be bought. Don’t think of going short.
All the best. Happy trading.
1) FII & DII data: FIIs and DIIs (for a change) both were Net buyers by 43 Crs and 440 Crs approximately. Figures are on lower side. The final FII figures for yesterday, i.e.Tuesday show that FIIs were Net buyers in Equity (4516 Crs- too huge a buying) and in index futures (3934 Crs- again very huge net buying figure) but Net Sellers in stock futures (777 Crs). And yet you may say why Nifty fell yesterday? But Banknifty did make its next lifetime high in those very times- rally in second half. So it is possible that all that buying went into buying Banking stocks.
2) Option chain data: On PUT side too we see confidence of Put writers. Highest total OI is at 12000 but there is fresh Put unwinding on that strike. What does it mean? The chances are that some put writers might have shifted their writing on higher strikes because highest Put writing is seen at 12100. On CALL side, frankly there is no resistance worth stopping Nifty bandwagon, as of now at least. The highest total OI is at 12200 and highest writing is at 12500 which is too far. So Nifty does not have any effective resistance. Somehow I see overconfidence more that confidence and tomorrow being expiry, wild moves are expected.
3) Charts: On daily chart, Nifty finished as a small green candle with higher low and lower high. What was notable today is that Nifty just once went down and made a low of 12055 (meaning didn’t even touch 12050) and went up and created new intra-day high. That is the strength I was talking about. On 15 min chart, I have marked a buying area where Nifty can be bought. Don’t think of going short.
All the best. Happy trading.