Powerful Bulls were unable to push Nifty across the resistance created by the timid bears at 11500 Call strike. Price returned from 11495 on Thursday. 11500 is the resistance line Pitchfork.
OI Table: On Friday bears increased their position at 11500 Call strike (total 433800 shares added). What did the bulls do on Friday? OI Table gives clarity. They booked profit. Simultaneously they took fresh positions by writing Puts at 11200 and 11450 strikes.
We may like to take note that Nifty is a breakout stock on three timeframes. Even then Nifty can correct to adjust the indicators and MAs. On Friday Nifty stopped at 5 DMA. So if this MA is breached on the downside, 9 DMA may support the price. The median of Pitchfork is near 15 DMA. This could play as an intermediate support zone. This is also the level from which recent breakout has occurred.
Market analysts are deeply concerned of Nifty PE ratio which is at the highest point. In last 18 years this is the third time that PE ratio reached this level.
PE Ration of August expiry is at the highest zone @ 28.23 (27.70 of 10th Jan 2008 and 27.19 of 15th Feb 2000). On 2nd Feb 2018 PE ration made a high of 26.04 and then climbed down.
Conclusion: High probability of consolidation in coming days.
As we are speeding towards general election, just in next six months time, market can be volatile. There is perceived optimism for Modi to be back on the throne. Grand alliance of opposition parties seems to crumble before even formally taking off.
Crude is taking support of 200 DMA.
OI Table: On Friday bears increased their position at 11500 Call strike (total 433800 shares added). What did the bulls do on Friday? OI Table gives clarity. They booked profit. Simultaneously they took fresh positions by writing Puts at 11200 and 11450 strikes.
We may like to take note that Nifty is a breakout stock on three timeframes. Even then Nifty can correct to adjust the indicators and MAs. On Friday Nifty stopped at 5 DMA. So if this MA is breached on the downside, 9 DMA may support the price. The median of Pitchfork is near 15 DMA. This could play as an intermediate support zone. This is also the level from which recent breakout has occurred.
Market analysts are deeply concerned of Nifty PE ratio which is at the highest point. In last 18 years this is the third time that PE ratio reached this level.
PE Ration of August expiry is at the highest zone @ 28.23 (27.70 of 10th Jan 2008 and 27.19 of 15th Feb 2000). On 2nd Feb 2018 PE ration made a high of 26.04 and then climbed down.
Conclusion: High probability of consolidation in coming days.
As we are speeding towards general election, just in next six months time, market can be volatile. There is perceived optimism for Modi to be back on the throne. Grand alliance of opposition parties seems to crumble before even formally taking off.
Crude is taking support of 200 DMA.