It was out of textbook rally today. No great local trigger, no great local news w.r.t. markets but Hang-Seng jumping by around 460 points (on the back fo Trump's quote regarding US china trade war) is what our markets opened with. And, the rise continued. I attempted to short twice and got stopped out…twice! Please check my video posted on youtube under name Market Movers India for slightly more but similar content. Nifty closed with a massive rally of 159 points. Such was the convincing rally in Nifty and Banknifty both, that they demolished all resistances in their path and now are in pursuit of life time highs made earlier.
1) FII & DII data: As expected, FIIs made net purchase of around 961 Crs and DIIs were Net sellers by 213 Crs. On Friday, according to final data, FIIs were net buyers in Equity (578 Crs) but net sellers in index futures (832 Crs) and Stock futures (42 Crs). FII buying is driving this rally.
2) Option Chain data: today’s figures are in complete contrast with yesterday’s figures. Yesterday I said there seems to be a tug of war at 11900. Today, there is no tug of war and bulls are on winning side. On PUT side, highest total OI (48.68 lakhs) and Put writing (28.67 lakhs) both is seen at 12000 strike. Look at the massive figures. In fact at 11900 and 11950 too there is impressive total OI and Put writing. So for tomorrow 12000 is a reliable support. On CALL side, there is unwinding on almost all strikes. Highest total OI is at 12000 but highest unwinding is also at 12000. Frankly, there is no dependable resistance for raging Nifty.
3) Charts: On daily chart we see the hugeness of Nifty’s rally. It opened with a small gap up of 8 points and kept on rising demolishing each and every Selling areas, resistances, previous highs, etc to come very near to lifetime high of 12103. It is possible that tomorrow Nifty goes past it. On 15 min chart, therefore, there are no selling areas but a buying area quite below CMP is marked which, to me looked dependable.
All the best. Happy trading.
1) FII & DII data: As expected, FIIs made net purchase of around 961 Crs and DIIs were Net sellers by 213 Crs. On Friday, according to final data, FIIs were net buyers in Equity (578 Crs) but net sellers in index futures (832 Crs) and Stock futures (42 Crs). FII buying is driving this rally.
2) Option Chain data: today’s figures are in complete contrast with yesterday’s figures. Yesterday I said there seems to be a tug of war at 11900. Today, there is no tug of war and bulls are on winning side. On PUT side, highest total OI (48.68 lakhs) and Put writing (28.67 lakhs) both is seen at 12000 strike. Look at the massive figures. In fact at 11900 and 11950 too there is impressive total OI and Put writing. So for tomorrow 12000 is a reliable support. On CALL side, there is unwinding on almost all strikes. Highest total OI is at 12000 but highest unwinding is also at 12000. Frankly, there is no dependable resistance for raging Nifty.
3) Charts: On daily chart we see the hugeness of Nifty’s rally. It opened with a small gap up of 8 points and kept on rising demolishing each and every Selling areas, resistances, previous highs, etc to come very near to lifetime high of 12103. It is possible that tomorrow Nifty goes past it. On 15 min chart, therefore, there are no selling areas but a buying area quite below CMP is marked which, to me looked dependable.
All the best. Happy trading.