Nifty Overall Analysis
Nifty ended with a positive note after 6 days of consecutive fall. Index negated the lower high lower low formation which index was making for the last 6 trading sessions. Intraday index respected yesterdays low and also broke yesterday’s high. Day’s price action indicates that the bulls were in total control and also Nifty managed to close near the high point of the day. Today’s we saw some value buying in the stocks and short covering in the weekly index options as well.
As we discussed on our previous blogs nifty got support around the 200 DMA. 10030 will be a strong support in the chart and break below can trigger heavy selling pressure. If index is able to hold on to the 200 DMA, then we can expect a pullback rally coming days. FII’s sold shares worth of 364Cr and DII’s bought shares worth of 675Cr in the cash market. India VIX cooled 7 % intraday and closed at 14.58 which is a good sign for the bulls.
Nifty PSU Banks & Nifty Financial service sectors lead the rally and we saw some profit booking in Nifty Metal & Nifty FMCG sectors. SBIN, ICICIBANK & ADANIPORTS were the major gainers and SUNPHARMA, TATASTEEL & HINDALCO were the major losers. In the NSE stocks, Advance decline was almost mixed, 716 stocks advanced and 781 stocks declined. 6 stocks made 52 week high and 196 stocks 52 week low as well.
Nifty Derivative Analysis
FII’s bought 8059 long index futures and added 4563 short Index futures position. FII’s Net Index futures position is see url 9649 (Short positions).
Pro’s sold 5786 long index futures and covered 2181 short index futures position. Pro’s Net Index futures position is follow url 13556 (Short positions).
FII’s sold 5784 long call options and covered 6377 short call options. Net call option positions in the index are 101702.
FII’s bought 730 long put options and covered 2689 short put options. Net put option positions in the index are 214026. (Every month FII’s buy around 2lakh put contracts for portfolio hedging)
PRO’s sold 24792 long call options and covered 83221 short call options. Net call option positions in the index are -163011.
PRO’s sold 25123 long put options and covered 5204 short put options. Net put option positions in the index are -44632.
Put call ratio for the current series is 0.84
India VIX closed today at 14.58 VIX above 13 is bit cautious.
10500CE is having the highest OI in the call side.
10000PE is having the highest OI in the put side.
Today we saw fresh call writing in 10000CE & 10100CE strikes. Looks like nifty is bottoming out at current levels and major players have started writing put options. Also PRO’ have exited 78K short positions in the index options.
- Stock Futures
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.
Nifty closed above the 200 DMA today and it is currently trading below all the major moving averages. If index holds on to 200 DMA then we can expect a pullback coming days.
10030-10000 zone will be a strong support and break below can trigger heavy selling pressure and a major trend reversal.
MACD gives a sell signal.
RSI is in no trade zone.
Tomorrow it’s the fresh start for the next week bank nifty options and Nifty closed near the high point of the day. We can expect further short covering and pullback in the nifty if index holds on to 200 DMA. Most of the stocks have corrected 20-30 % from the highs and those who are planning for a long term portfolio can add some quality stocks at current levels.
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