Nifty Darling

On a daily chart the darling has formed couple of Pin Bar Candlesticks and during last session it formed a doji Candlestick pattern. On a weekly chart bulls have been able to hold 50 Week Moving Average and two doji candlestick patterns are clearly visible. These candlestick formation on daily as well as weekly charts suggests that the Index is finding demand around 8160-8200 levels. 

  

As per Options data 8000 PE is having highest OI whereas 8400 CE is having highest OI. Total OI at 8300 CE strike is 38.88 lac whereas 8300 PE Strike is 30.04 lac. So we can expect tough fight for 8300 in sessions ahead. VIX trading around its resistance zone of 20 mark and with major data out expect it to further cool down.

Traders can initiate long position around 8200-8160 levels with SL of 8100 expecting to book profit around 8280-8335. On the other hand short position can be initiated around 8350-8380 with SL of 8430 for possibility of booking profit around 8230-8200 mark.

Nifty Options Strategy 161212

After posting new all time high the Index witnessed correction and kissed 6150 level.  After continuous fall from higher level the Index today took pause and showed some sign of consolidation and gave a flat close. Nifty has a next support around 6135 level and considering today's move we expect the Index to witness bounce from here. Though the trend is Negative, in light of the facts mentioned we would recommend to Buy 6200 CE at 64 with the SL of 50 TGT 85-90 in a short term.

 

 

 

 

 

NIFTY UPDATES 15813

AS PER THE OPTION CHAIN 5700 PE IS NOW HAVING HIGHEST OI OF ALMOST 64 LAC WITH HUGE ADDITION OF 18.27 LAC. 5700 CE IS HAVING OI OF49.9 LAC. TOTAL OI AT 5800 CE AND 5800 PE IS 51.84 LAC AND 36.46 LAC RESPECTIVELY. 5900 CE IS HAVING HIGHEST OI OF 64.53 LAC. VIX CLOSED IN RED AND NOW CONSECUTIVELY CLOSING BELOW 20 LEVEL. SO IT SEEMS THAT BULLS ARE HAVING VERY TIGHT GRIP ON 5700 LEVEL WHICH IS NOW GOING TO ACT AS MAJOR SUPPORT FOR NIFTY. 5900 ON THE UPPER SIDE IS THE IMMEDIATE STRONG RESISTANCE. AS MENTIONED IN OUR EARLIER POST 5763 IS THE RESISTANCE WHICH ONCE CROSSED NIFTY CAN KISS 5815-5830 LEVEL. THE BIAS IS STILL BULLISH AND BEING RATIONALE TRADER ONE MUST STAY WITH THE TREND. THE BEST STRATEGY AT THIS JUNCTURE SHOULD BE BUY ON EVERY DECLINE UNLESS AND UNTIL 5692 IS BROKEN. 

NIFTY UPDATES 13813

AS EXPECTED NIFTY MOVED 1.5% TODAY AND FORTUNATELY NORTHWARDS.. :) NIFTY FOUND A STRONG SUPPORT AROUND 5460 AND TODAY THE BOUNCE WAS CAPITALIZED. AS PER OPTION CHAIN HEAVY LIQUIDATION WITNESSED IN 5200,5300 AND 5400 PE STRIKES INDICATING PROFIT BOOKING BY THE BULLS. 5600 PE ADDED ALMOST 12 LAC IN OI TAKING TOTAL OI AT 52.26 LAC SUGGESTING 5600 EMERGING AS SUPPORT . TOTAL OI AT 5700 CE AND 5700 PE IS 46 LAC AND 45.69 LAC. SO WE ARE HAVING EQUAL OI AT 5700 STRIKE FOR WHICH WE MAY SEE FIGHT. 5800 CE IS HAVING OI OF 53.71 AND 5900 CE IS HAVING OI OF 61.55 LAC. 5800 PE IS HAVING TOTAL OI OF 30.59 LAC. SO 5800 REMAINS IMMEDIATE RESISTANCE. VIX WAS DOWN BY ALMOST 10% AND CLOSED BELOW 20 MARK. SO THE BIAS IS SLIGHTLY IN FAVOR OF BULLS NOW. RESISTANCE FOR NIFTY IS 5763. ON THE DOWN SIDE 5660-5630 WILL ACT AS SUPPORT.

NIFTY UPDATES 12813

IN TODAY'S SESSION NIFTY BROKE 5630 ON INTRADAY BASIS BUT FAILED TO SUSTAIN AT HIGHER LEVELS AND FINALLY CLOSED AT 5612 AND FORMED A DOJI CANLESTICK ON A DAILY CHART. AS PER OPTION DATA 5400 PE IS HAVING THE HIGHEST OI OF 70.7 LAC. OI AT 5500 PE IS ALMOST 60 LAC WHEREAS OI AT 5500 CE IS 23.17 LAC. OI AT 5600 CE IS 42.98 LAC WHEREAS AT 5600 PE IS 41.76 LAC. 5700 CE IS HAVING OI OF 48.47 LAC WHILE 5700 PE IS HAVING OI OF 42.86 LAC WITH ADDITION OF 3.42 IN OI. THE INTERESTING FACTOR IS THAT 5700 PE IS HAVING HIGHER OI THAN 5600 PE. VIX CLOSED IN GREEN AT 21.28 MARK. SO THE CONFUSION HERE IS AS TO WHETHER 5700 PE WITNESSED WRITING OR BUYING? HOWEVER WITH NIFTY CLOSING BELOW 5630 WITH FORMATION OF DOJI WE SENSE 5700 PE MUST HAVE WITNESSED BUYING. THE OTHER REASON TO SUPPORT THE VIEW IS THAT 5700 PE STRIKE IS IN THE MONEY AND WRITING NORMALLY IS NOT PREFERRED IN IN THE MONEY OPTIONS. IF IT IS VICE-VERSE i.e. WRITING IN 5700 PE MARKETS MAY MOVE BEYOND 5700. IN A NUTSHELL THE DATA IS CONFUSING BUT AT LEAST WE CAN CONCLUDE THAT EITHER SIDE A BIG MOVE IS ABOUT TO HAPPEN IN A DAY OR SO. SO TRADERS MUST BE VERY CAUTIOUS NOW.

NIFTY UPDATES 9813

NIFTY IS NOW FINDING SUPPORT AROUND 5470 ZONE.  AS PER OPTION CHAIN 5400 PE IS HAVING HIGHEST OI OF 68.21 LAC. OI AT 5500 CE AND 5500 PE IS 23.35 LAC AND 50.54 LAC. 5600 CE IS HAVING OI OF 45.62 LAC AND 5600 PE IS HAVING OI OF 34.75 LAC. 5700 CE IS HAVING OI OF 49.48 LAC WITH HUGE ADDITION OF 10.39 LAC IN OI. VIX CLOSED DOWN BY ALMOST 4% AT 21.19. SO ON THE DOWNSIDE 5500 IS THE IMMEDIATE SUPPORT WHEREAS 5700 REMAINS A TOUGH RESISTANCE. AS PER THE DATA IT SEEMS MARKETS MAY CONSOLIDATE IN A RANGE OF 5500-5650. ON THE UPPER SIDE 5630 MAY ACT AS IMMEDIATE STRONG RESISTANCE.

NIFTY UPDATES 7813

NIFTY IS NOW CLOSING BELOW ITS UPTREND LINE FOR THE LAST COUPLE OF SESSIONS AND STILL THE MARKETS ARE SHOWING NO SIGN OF RECOVERY. AS PER OPTION CHAIN HUGE OI WAS BUILT UP TODAY AT 5400 PE AND TOTAL OI REACHED 76.6 LAC. 5500 CE AND 5500 PE IS HAVING OI OF 22.61 LAC AND 52.25 LAC. 5600 CE IS HAVING OI OF 40.16 LAC. VIX CLOSED IN RED TODAY AT 22 LEVEL. SO THE IMMEDIATE RANGE OF NIFTY SEEMS TO BE 5400 TO 5600. SINCE THE TREND IS STILL DOWN INVESTORS ARE REQUESTED TO STAY SIDELINE UNLESS MARKETS CONSOLIDATE RATHER THAN JUMPING TO CATCH THE FALLING KNIVES.