I wrote yesterday that 'I was expecting a red candle, albeit with higher high and higher low'. Notwithstanding more than expected, 35 basis point cut in repo rate by RBI, market still tanked and gave a red candle. I also wrote that popular perception was 25 bps cut and if more was done market would go up. I was proved wrong on that. Nifty did go up momentarily and then bears took control of market. Only point I wanted to make ( by reminding what I wrote yesterday) was, despite such a massive cut Selling just didn't stop. So imagine the bearishness in the market!
1) Provisional figures do not give correct picture so I will directly write FII final Buy/ Sell figures- FIIs were Net sellers in Equity by 2041 Crs, in Index futures by 541 Crs and Net buyers in Stock futures by 689 Crs. Same pattern no change!
2) On PUT side, there is Put unwinding on all strikes except 2 strikes of 10750 & 10850 and the Put addition in these 2 strikes is very low. Highest total OI is at 10800 of 14.59 lakhs but there too we see Put unwinding of 2.86 lakhs. So there is hardly any good support! On CALL side, there is Call unwinding on all strikes starting from 11150 and higher. So call writers are confident that NIFTY is not going to expire above 11150! Highest total OI (30.30 lakhs) is at 11000 but highest fresh call writing (9.98 lakhs) is at 11100 which also has 2nd highest total OI. So primary resistance is at 11000 followed by 11100 and 10800 is too weak support which can break easily.
3) On charts, NIfty made a red candle with lower high but higher low. Bank Nifty made red candle with higher high and higher low. So the tussle will also continue tomorrow. If you see NIfty daily chart for past 7 days, we see that NIfty is rising on one day(green) and falling on next day (red) alternatively for all 7 days. By that logic we may see a green candle tomorrow. But then it will have to seek support from lower limit in weekly buying area shown on 15 min chart. So that's our buying levels. As for Shorting levels there are 2 good resistances and one can short there, with SL above 2nd resistance.
All the best. Happy trading.
1) Provisional figures do not give correct picture so I will directly write FII final Buy/ Sell figures- FIIs were Net sellers in Equity by 2041 Crs, in Index futures by 541 Crs and Net buyers in Stock futures by 689 Crs. Same pattern no change!
2) On PUT side, there is Put unwinding on all strikes except 2 strikes of 10750 & 10850 and the Put addition in these 2 strikes is very low. Highest total OI is at 10800 of 14.59 lakhs but there too we see Put unwinding of 2.86 lakhs. So there is hardly any good support! On CALL side, there is Call unwinding on all strikes starting from 11150 and higher. So call writers are confident that NIFTY is not going to expire above 11150! Highest total OI (30.30 lakhs) is at 11000 but highest fresh call writing (9.98 lakhs) is at 11100 which also has 2nd highest total OI. So primary resistance is at 11000 followed by 11100 and 10800 is too weak support which can break easily.
3) On charts, NIfty made a red candle with lower high but higher low. Bank Nifty made red candle with higher high and higher low. So the tussle will also continue tomorrow. If you see NIfty daily chart for past 7 days, we see that NIfty is rising on one day(green) and falling on next day (red) alternatively for all 7 days. By that logic we may see a green candle tomorrow. But then it will have to seek support from lower limit in weekly buying area shown on 15 min chart. So that's our buying levels. As for Shorting levels there are 2 good resistances and one can short there, with SL above 2nd resistance.
All the best. Happy trading.