The move which people were expecting to happen on Sunday (Muhurat trading day), happenned today. Nifty climbed up handsomely and took Banknifty along with it. The pullers were Auto Sector led by Tata Motors, Reliance, Metals due to perceived easing of trade tensions between US and China. The draggers were telecom companies due to payment crisis posed due to SC judgement on AGR issue. Had the exposure of telecom companies to various private sector banks not made banks nervous, even BNF would have climbed massively. Nifty was up by 159.7 points where as BNF was up by 356.75 points. Now what about tomorrow? Let's see!
1) FII & DII data: According to provisional data, both FIIs and DIIs were net buyers by 877 and 145 Crs respectively. The buy sell absolute figures were high for FIIs than normal figures which show they do not want to commit money.
2) Option chain data : On PUT side, highest total OI (31 lakhs) and highest Put writing ( 24.79 lakhs, massive put writing!), both are seen at 11700 strike. At 11750 & 11800 both strikes, Put writing is above 10 lakhs, which shows confidence of bulls. Effectively, it means 11700 is very strong support. On CALL side, highest total OI is at 12000. Interesting part is that there is unwinding at 12000 but fresh call writing at 11800 (2.15 lakhs) and 11900 (3.46 lakhs). This effectively means that Bears do not see Nifty going past 12000. So at least for tomorrow, 11900 should be seen as Ok resistance.
3) Chart : On daily chart, Nifty finished as a strong green candle closing way above long time resistance of 11700. It did attempt to go beyond 11800 but came down and closed at 11786.85. It is trading above all long term EMAs comfortably. Though there is no clear cut buying area, 11700 support, calls for buying if Nifty falls till those levels. The appropriate levels are marked on 15 min chart.
All the best. Happy trading.
1) FII & DII data: According to provisional data, both FIIs and DIIs were net buyers by 877 and 145 Crs respectively. The buy sell absolute figures were high for FIIs than normal figures which show they do not want to commit money.
2) Option chain data : On PUT side, highest total OI (31 lakhs) and highest Put writing ( 24.79 lakhs, massive put writing!), both are seen at 11700 strike. At 11750 & 11800 both strikes, Put writing is above 10 lakhs, which shows confidence of bulls. Effectively, it means 11700 is very strong support. On CALL side, highest total OI is at 12000. Interesting part is that there is unwinding at 12000 but fresh call writing at 11800 (2.15 lakhs) and 11900 (3.46 lakhs). This effectively means that Bears do not see Nifty going past 12000. So at least for tomorrow, 11900 should be seen as Ok resistance.
3) Chart : On daily chart, Nifty finished as a strong green candle closing way above long time resistance of 11700. It did attempt to go beyond 11800 but came down and closed at 11786.85. It is trading above all long term EMAs comfortably. Though there is no clear cut buying area, 11700 support, calls for buying if Nifty falls till those levels. The appropriate levels are marked on 15 min chart.
All the best. Happy trading.