Big day coming up: 16th April Weekly expirySo, as was suggested Nifty did face resistance at 9185-9233. It opened at 9196 made a high of 9261 and came down to close 68 points in the negative at 8925. Now Will we see the lower end of the range as suggested in previous post...?
Link to previous post
Let’s see what we have got in our hands today…
FIIs were net buyers in Futures. 19.2K contracts were bought worth Rs 1283 Cr.
Futures data
- FIIs bought 8366 Long Contracts & squared off 10869 Short contracts.
- Retail clients squared off 2784 Long contracts & added 8177 Short contracts.
- Pro traders added 1063 Long Contracts & added 4408 Short Contracts
Option Data Analysis
- On the Call option front , FIIs added 10.4K Call Long & created 11.6K Call Short contracts
- Retail clients added 1.25 Lakhs Call long & created 80.6K Call Short contracts
- Pro traders added 16K Call long & created 59.4K Call Short contracts
Activity were seen at 9200 & 9300 Call option in early trade and at 9000 Call option in the last 1 hour.
- On the Put option front FIIs bought 10.5 Put Long & an equal 10.5K Put contracts were Shorted by them.
- Retail clients bought 40.5K Puts & 28.05K Put contracts were shorted by them.
- Pro traders bought 7.25K Puts & 19.75K Put contracts were shorted by them.
All in all, despite a positive figure by FIIs, they are still playing a second fiddle role, Pros are happy as their strategy to play for range bound movement worked well in today’s session - Both Calls & Puts closed in negative territory. And now Pro traders don't see much upside tomorrow and Retail participants looked likely to have scrambled for averaging their Call options. Averaging of Options just because price has fallen - it's a risky proposition.
Given the setup, Upside looks capped. (Market seldom favors the desperate )
We might be testing the lower range around 8800 as suggested yesterday
Resistance 8960 / 9030 / 9072
Important support levels on the lower side 8835 / 8796 / 8758 / 8720
Level of 8816-8835 can be very crucial and needs to be watched carefully.
Take care & safe trading....!!!
Take care & safe trading…!!!
