World markets- DJIA, NASDAQ and the three major European indices closed in green on Friday despite Russia Ukraine war going on which does indicate some positivity for world markets.
FIIs have shifted gears and are buying and then by default DII need to sell, so Friday's Cash figures were- FIIs net BOUGHT= Rs.1910 Crs and DII net SOLD=184 Crs. In futures, FIIs sold Index as well as Stock futures but volumes were not significant (-278 Crs & -44 Crs). So overall situation from FIIs standpoint is bullish.
In the option chain there is huge unwinding on CALL side even though highest total OI and Call writing both, near CMP, is at 17600 which actually is ITM strike. Otherwise highest Total OI and Highest Call writing is seen obiviously at 18000. On PUT side however there is Put writing on almost all strikes which suggest a strong bullish build-up.
On charts too both Nifty and Banknifty closed above psychological levels of 17600 and 37000 gaining a lot of ground intraday, again suggesting bullish activity.
So summarising all signals despite daily fuel hike, despite war raging continuously, despite world governments talking about impending food and commodity inflation - markets are rising and looks like they will continue their forward march. If Nifty does fall due to some bad news which doesn't look likely, consider buying Nifty at around17540 with SL at around 17500 ( or below slightly). Though one can also buy at around 17590 ( with SL at 17560) that buying area will be compromised if there is any negative news from war/ crude oil front.
FIIs have shifted gears and are buying and then by default DII need to sell, so Friday's Cash figures were- FIIs net BOUGHT= Rs.1910 Crs and DII net SOLD=184 Crs. In futures, FIIs sold Index as well as Stock futures but volumes were not significant (-278 Crs & -44 Crs). So overall situation from FIIs standpoint is bullish.
In the option chain there is huge unwinding on CALL side even though highest total OI and Call writing both, near CMP, is at 17600 which actually is ITM strike. Otherwise highest Total OI and Highest Call writing is seen obiviously at 18000. On PUT side however there is Put writing on almost all strikes which suggest a strong bullish build-up.
On charts too both Nifty and Banknifty closed above psychological levels of 17600 and 37000 gaining a lot of ground intraday, again suggesting bullish activity.
So summarising all signals despite daily fuel hike, despite war raging continuously, despite world governments talking about impending food and commodity inflation - markets are rising and looks like they will continue their forward march. If Nifty does fall due to some bad news which doesn't look likely, consider buying Nifty at around17540 with SL at around 17500 ( or below slightly). Though one can also buy at around 17590 ( with SL at 17560) that buying area will be compromised if there is any negative news from war/ crude oil front.