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WEEKLY expiry and Nifty Bank Nifty direction



WEEKLY expiry and Nifty Bank Nifty direction
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Please find below fresh report of option chain and OI build up on day of weekly index expiry , not much has changed actually and OI build up is same on the levels as it was yesterday hence trading range may remain in between 10020 to 10220.
OI build up is more in CE at strike price of 10300, 10400, 10500.put OI build up and writing looks only at level of 1000 and 9800.Hence looks market may remain in range
https://www1.nseindia.com/live_market/dynaContent/live_watch/option_chain/optionKeys.jsp

Important pointer before entering into trade
  1. US markets ended mixed.
  2. Nasdaq closed above 10K for the first time.
  3. But Dow fell 600 points in last two days.
  4. Fed event became non event.
  5. Asian markets are mostly in Red.
  6. SGX Nifty is down by about 50 points.
  7. For the last three days, markets have been highly volatile.
  8. But yesterday from 3 pm to 3. 15 pm, it was extra ordinary, Nifty shot up 100 points and Bank Nifty 500 points.
  9. So it was a short covering rally.
  10. Bank Nifty was too volatile, moving up 300 points and moving down 300 points many times.
  11. That is why Option premiums were very high.
  12. Even 18500PE which was more than 2000 points away, one day to expiry, it was trading more than Rs 5 (around 2.30 pm)
  13. Despite such a power full short covering, HDFC bank ended below Rs 1000.
  14. Both HDFC Bank, ICICI Bank under performing.
  15. Axis and IndusInd looking very strong.
  16. A key thing to note in yesterday's trading is that FIIs turned net sellers for Rs 900 crores and DIIs turned net buyers in Cash market.
  17. Without significant buying by FIIs, Nifty may not move significantly.
  18. So we can reasonably assume, 10350 is the resistance in near future.
  19. As usual markets are likely to be highly volatile.
  20. But underlying tone seems to be bullish in many stocks.
  21. Say for example, ITC, Call premiums are higher than Put premiums.
  22. This happens only when people take bullish view.
  23. Supreme Court case regarding AGR issue is another key event, but that can turn out to be non event, just like Fed.
  24. Reliance has met with huge resistance at 1620, at the same time it is not too bearish.
  25. Will make some profit as long as it is trading below 1680 and maximum profit will be when it expires around 1620.
  26. Nifty future may trade between 10020 and 10220.


Comments

  1. DariyaJuly 6, 2020 at 4:30 PM

    Nice article thanks for sharing such a valuable information with us.you may also check our blog for more information
    Aditya Birla Sun Life Banking ETF
    Nifty Bank Index

    ReplyDelete
  2. DariyaOctober 3, 2020 at 3:12 PM

    Great work ! I am very interesting to read your blog post. Thanks for sharing
    Nifty breaks at 11K
    Nifty
    sensex




    ReplyDelete

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