Nifty Daily Analysis as on 01/3/2018 – Futures & Options Derivative Analysis (Read More)

go to link Nifty Overall Analysis

Volatility is back in the global markets, traders are advised to trade with caution coming few sessions.  Index needs to break 10600/10300 levels for trend confirmation. In between chances are index will range bound. 10302 is a strong support in the chart and a break below bears will be in upper hand and bears can take index up to 10100. Aggressive traders can take buy on coming dips with 10300 levels as stop loss. Technically, Index closed near the 100 SMA and it will be a crucial support. Last few days price action indicates that the bears were in control currently.

Nifty is making lower high lower low formation for the 3 trading sessions. FII’s bought shares for 241Cr and DII’s sold shares for 3Cr in the cash market. In February month FII’s were net sellers and they have sold shares total worth of 18619Cr. DII’s were the net buyers and they have bought shares total worth of 17813Cr in the cash market.

Today Nifty PSU Bank, Nifty Media & Nifty Metal sectors saw good amount of profit booking and all the other major sectors ended in red. BPCL, COALIND & AUROPHARMA were the major gainers and ICICI, VEDL & ZEEL were the major losers. In the NSE stocks, Advance decline was in total favor for the bears, 545 stocks advanced and 935 stocks declined. 18 stocks made 52 week high and 29 stocks 52 week low as well.

buy Tastylia online without prescription Nifty Derivative Analysis

FII’s sold 5015 long index futures and added 3662 short Index futures position. FII’s Net Index futures position is 1740 (Short positions).

Pro’s bought 2834 long index futures and added 4863 short index futures position. Pro’s Net Index futures position is 6109 (Short positions).

  • Options

FII’s bought 8141 long call options and added 4920 short call options. Net call option positions in the index are 115864.

FII’s sold 5050 long put options and covered 892 short put options. Net put option positions in the index are 174692. (Every month FII’s buy around 2lakh put contracts for portfolio hedging)

PRO’s sold 6616 long call options and covered 7593 short call options. Net call option positions in the index are -135128.

PRO’s sold 11446 long put options and covered 40320 short put options. Net put option positions in the index are -13263.

Put call ratio for the current series is 0.92.

India VIX closed today at 14.07 VIX above 13 is bit cautious.

10800CE is having the highest OI in the call side and 10700 will act as resistance.

10400PE is having the highest OI in the put side and 10390 will act as support.

PRO’s have covered 40K short put options contracts in the Index. Currently PRO’s have 121K short positions in the index options. FII’s long to short ratio in the index futures 0.98 which means FII’s have more short positions in the Index futures. Major players are currently short in the index derivatives and we need a meaningful short covering coming days.

  • Stock Futures

Long build up was seen in IDBI & NIITTECH and short built up was seen in ZEEL, SAIL & VGUARD.

Nifty Technical Analysis

10630-10600 Zone will be a strong resistance and if index close above 10630 levels then chances are index will test 10720/10900.

10300 – 10270 will be a strong support and if index close below the levels then chances are index will test the 200DMA/10030 Previous Swing low.

Nifty closed near the 100 EMA today and is trading below all the short term moving averages.

MACD gives a buy signal.

RSI is in no trade zone.

Nifty Outlook

SGX nifty is indicating a gap down opening, however the market sentiment is still bullish and the best strategy for tomorrow’s session is buying on the dips with 10300 as tight stop loss. As long as the Index holds on to 200 DMA, the long term trend is bullish.  If index is not able to hold on to 10300 levels then the bears will be having upper hand and bears will drag index towards 10100 levels. However to resume the uptrend nifty needs to close above 10630 levels coming days.

 

 


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