Nifty Overall Analysis
Nifty formed an “Inside day” in the daily chart. Inside day is a candlestick formation that occurs when the entire daily price range for a given security falls within the price range of the previous day. Days candle “Bearish Candle” indicates the bears were in total control today. We saw some profit booking by the late session and Index closed near the low point of the day. 10440 levels is a near term hurdle to cross, 10440 is the 61.8% retracement of the nifty from recent high 10630 to recent low 10140.
Nifty is trading below the major short term moving averages and 20 SMA is currently acting as a strong resistance. Today it was the Nifty bank weekly expiry and we saw movements on the both sides. Tomorrow it’s the fresh start for next series and we can expect a trend day.
FII’s sold shares worth of 705Cr and DII’s sold shares worth of 256Cr in the cash market.
All the major sectors ended in red today. Nifty Energy, Nifty Media & Nifty PSU Banks saw some profit booking. ASIANPAINT, M&M & COALIND were the major gainers and IOC, YESBANK & RELIANCE were the major losers among the heavyweights. In the overall NSE stocks, Advance decline was in favor of bulls, 945 stocks advanced and 543 stocks declined. 14 stocks made 52 week high and 47 stocks 34 week low as well.
Nifty Derivative Analysis
Pro’s bought 5064 long index futures and covered 3560 short index futures position. Pro’s Net Index futures position is 3391 (Short positions).
FII’s sold 10895 long call options and covered 1796 short call options. Net call option positions in the index are 104851.
FII’s bought 4398 long put options and added 2788 short put options. Net put option positions in the index are 200980. (Every month FII’s buy around 2lakh put contracts for portfolio hedging)
PRO’s sold 27502 long call options and covered 14389 short call options. Net call option positions in the index are -154714.
PRO’s sold 14869 long put options and covered 59698 short put options. Net put option positions in the index are -51824.
Put call ratio for the current series is 0.95
India VIX closed today at 14.33 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 call writing in 10500CE and unwinding in 10400PE. PRO’s are now short in the index options by 100K contracts. FII’s added 7.5K short index future today.
- 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 10900 levels soon.
Nifty closed below the 20 SMA. Index is trading below all the major short term moving averages.
10140-10100 zone acted as near term bottom and break below can trigger further selling pressure.
RSI is in no trade zone.
Tomorrow it’s the fresh start for the bank nifty weekly options. So we can expect a trend day. Currently, Nifty is facing resistance at 10420 and short term support around 10330. In between chances are index will range bound. As of now markets are trading in a no trade zone. So we need a break out from the mentioned levels to get further direction for our markets. If nifty is able to cross 10420, we can expect a short covering rally and it can take nifty up to 10500 levels in no time.
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