Nifty is cautiously entering 'danger zone' and that can be seen on charts, option data and in FII & DII buy/Sell figures. From here onwards till 12108, it will be uphill task for Nifty. But the fact that Nifty is slowly inching its way up, assures us that in the event of fall, the fall will not be sudden and deep. We will get warning signals much in advance because at every dip, we are seeing buying, but selling volume also is showing increase day-by-day.
1) FII & DII data: Both FIIs & DIIs were net sellers today by 138 Crs and 500 Crs respectively. Final data for last friday, show that FIIs were net buyers in all segments, Equity, index futures and in stock futures. So even after today's net selling, we should not cut our longs and enter shorts.
2) Option chain data : On PUT side, highest total OI is at 11800 but highest fresh Put writing is at 11900. In fact, there is handsome put writing at 11950 also. So for tomorrow 11900 looks great support. ON CALL side, highest total OI is at 12000 and fresh highest Call writing is at 11950. Interestingly, there is unwinding at 11900 strike but call addition at 11950. So resistance is slowly shifting up. with CMP at 11941, we would look 12000 as our resistance as per option chain data.
2) Charts: I have displayed daily chart today to show the resistance zone of 12045 to 12108. It is here, I expect nifty to struggle. So going past 12000 now looks certain but by expiry 12050 will act as formidable resistance in absence of any positive news. To break this old level of 12100 we will need some good news, otherwise some bad news can take Nifty down from here. So for tomorrow, if Nifty falls near 11900, initiate buy for 11975 with 25 points SL.
All the best. Happy trading.
1) FII & DII data: Both FIIs & DIIs were net sellers today by 138 Crs and 500 Crs respectively. Final data for last friday, show that FIIs were net buyers in all segments, Equity, index futures and in stock futures. So even after today's net selling, we should not cut our longs and enter shorts.
2) Option chain data : On PUT side, highest total OI is at 11800 but highest fresh Put writing is at 11900. In fact, there is handsome put writing at 11950 also. So for tomorrow 11900 looks great support. ON CALL side, highest total OI is at 12000 and fresh highest Call writing is at 11950. Interestingly, there is unwinding at 11900 strike but call addition at 11950. So resistance is slowly shifting up. with CMP at 11941, we would look 12000 as our resistance as per option chain data.
2) Charts: I have displayed daily chart today to show the resistance zone of 12045 to 12108. It is here, I expect nifty to struggle. So going past 12000 now looks certain but by expiry 12050 will act as formidable resistance in absence of any positive news. To break this old level of 12100 we will need some good news, otherwise some bad news can take Nifty down from here. So for tomorrow, if Nifty falls near 11900, initiate buy for 11975 with 25 points SL.
All the best. Happy trading.