Bank Nifty Levels & Strategy for 12/09/2022

9 Eyl 2022

Dear traders, I have identified chart levels based on my analysis, major support, and resistance levels. Please note that I am not a SEBI registered member. Information shared here for educational purpose. Please don’t trust me or anyone for trading/investment purpose. Focus on learning how to fish, trust your own skills and please do consult your financial advisor before trading.

BANK NIFTY
Bank Nifty is up by 207 points. Bank Nifty performed well and closed above 40K level which should be considered really good amid ongoing global issues. Bank Nifty comfortably traded above 40K even after significant rate hike of 75 basis points by ECB. Has Bank Nifty credit growth improved significantly????? Has NPA gone down in recent past ????? Are these the main reason behind the rally? What do you think?

Has Break out in Bank Nifty sustained amid global issues? Yes, it looks like breakout is sustained above 40K level. What do you think?

Highest open interest on call side at 40500 (Shifted down from 41000 to 40500)
Highest open interest on put side at 39000 (Shifted down from 39500 to 39000)

NIFTY
Nifty is up by 35 points. It’s really important to understand that Nifty has sustained 17800 plus critical make or break levels amid global issues & profit booking by big traders. PCR is down from 1.17 ( bullish zone) to 0.89 ( bearish zone). Overall, Nifty performed well and hit the majority of the targets as expected. It's really difficult for option writers to manager gap-ups & gap-downs. These days, we are having higher swings in both the direction due to high liquidity and better retail traders participation. Support Zone in Nifty is shifted up. Important resistance levels became new support levels. IT sector has started performing now. Hoping, it will lift Nifty to new lifetime high.

Is Nifty getting ready to touch new lifetime high?
If Nifty crosses & sustained above 18000 level, then shall we expect Nifty to move further up?

Highest open interest on call side at 18000 (Remained at same level)
Highest open interest on put side at 17000 (Shifted down from 17500 to 17000)

Shall we continue look for sell on rise opportunities? I don’t think so. What do you think?
Shall we continue look for buy on dips opportunities near major support? Yes, I think so. What do you think?

Please do share your comments. Have a very happy, healthy & profitable day ahead!

9 Eyl 2022

Not

FII & DII F&O Buy/Sell Data Analysis Dated 09/09/2022

FIIs has bought in cash market for 2132 Crores and bought in derivatives market for 8297 Crores (Simply don’t go ahead on their buying figers, they have utilized thousands of crores for adding short positions in index & stock contracts).

Is market getting ready for sharp fall from nearly 52 week high?

FIIs reduced long as well as short index future contracts and sold stock future contracts. FIIs have added index call long and added short positions in remaining types of option contracts. Please note that FIIs have added 68734 index put long contracts.

Overall, FII are continuously buying in cash & adding lot of short contracts in F&O from more than week. Today also FIIs have maintained their bearish stance in almost all types of contracts and hedged it using index call options.

DIIs sold in cash market for -1168 Crores. DIIs added stock future contracts & sold index future contracts. DIIs have reduced index put long options and shorted stock calls. DIIs are neutral.

Pro traders bought index future and created short positions in remaining all types of contracts. Pro traders have also turned bearish on Friday.

Retail traders have sold index future & stock future contracts. They have bought 64470 index call and sold 90655 put contracts. Overall, they are extremely bullish on market. It looks like market correction will be very sharp in near future. What do you think? Is pump & dump going to repeat in coming days?

Friends, please do review FII & DII participant data thoroughly and let me know your comments & queries if any. Let work & win together. May God bless & save small retail investors like us.

I have analyzed the data based on my limited knowledge. I am not a SEBI registered member. Information shared here for educational purpose. Please don’t trust me for trading as it may lead to financial losses. Please do consult your financial advisor before trading.

9 Eyl 2022

Not

Nifty & Bank Nifty have given break out on technical charts. Both the indices closed above their major break out levels but F&O data is suggesting completely a different picture. Please make sure that Monday onwards your F&O positions are properly hedged to avoid big/unlimited losses.