Nifty (8224.20, -11.25, -0.14%)
The market remains quite volatile, choppy and directionless; while one can argue that over the last couple of sessions it showed some bias towards the bullishness but the intraday see-saw movement suggests acute indecision to commit to either side. When you see a huge recovery of nearly 100 points from day’s low, you would expect lot of fresh put writing even if it were to be real bullish momentum—only short squeeze can’t take you very far for once the shorts are covered the upward gumption peters out and the bulls are left high and dry. On the contrary, right from 8300 through 8800-strike calls saw a cumulative addition of around 3 million units of fresh current series calls while from 7900 through 8400 strike puts we saw an addition of a paltry sum of around 0.6 million unit of fresh open interest increase. This surely does not paint a very bright picture. Unless, another round of short squeeze happens, the Nifty may again slide to test sub-8150 levels if not sub-8100 levels.
The market remains quite volatile, choppy and directionless; while one can argue that over the last couple of sessions it showed some bias towards the bullishness but the intraday see-saw movement suggests acute indecision to commit to either side. When you see a huge recovery of nearly 100 points from day’s low, you would expect lot of fresh put writing even if it were to be real bullish momentum—only short squeeze can’t take you very far for once the shorts are covered the upward gumption peters out and the bulls are left high and dry. On the contrary, right from 8300 through 8800-strike calls saw a cumulative addition of around 3 million units of fresh current series calls while from 7900 through 8400 strike puts we saw an addition of a paltry sum of around 0.6 million unit of fresh open interest increase. This surely does not paint a very bright picture. Unless, another round of short squeeze happens, the Nifty may again slide to test sub-8150 levels if not sub-8100 levels.
- Most critical levels for the day: 8212 – 8189, its immediate support as well
- Strong support: 8164 – 8141
- Major support: 8120 – 8079
- Strong resistance: 8326 – 8355
- Major resistance: 8445 – 8489
Bank Nifty (18116.20, +81.75, +0.10%)
Similar kind of confused trading activity is happening even here as well. It looks as if the Bank Nifty might well oscillate between 18500 – 700 on the upper side while falling again to test levels 17000-levels. It could well happen that both levels come to pass in the near term. In such a situation, it would be more prudent to adopt a buy-weakness-sell-strength kind of range bound market trading strategy. Preserving capital should be the first priority for traders. The Bank Nifty could well oscillate between a smaller range of 18500 and 17500.
- Most critical levels for the day: 18187 – 18210, its immediate resistance
- Strong resistance: 18375 – 18400
- Major resistance 18505 – 18693
- Strong support: 18052 – 18000
- Major support: 17803 - 17453
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