NIFTY traded rangebound during first half of trading session yesterday and then gave intraday breakout on upside and tested 1st Sept high about 11553 and closed at 11543. European and American markets closed strongly with 1.5% to 2% up yesterday and as a result of this Asian markets are also positive today. SGX NIFTY is indicating around 30 points gap up opening.
Important point here is, NIFTY did not retest Monday 31st August low of 11325 in last two days and there has been a buying whenever market used to touch day’s low and it appears this buying is mostly from FIIs as they are net buyers in last two days whereas DIIs are net sellers. But we have wait and see till Monday/Tuesday next week if this buying will continue. This is because most of the times market will retrace after a big fall and then fresh selling starts. No one knows whether it will happen or not this time but we have to wait and see if NIFTY can continue to gain its strength and breaks it’s Resistance levels.
Today is weekly expiry and following are important Intraday levels for NIFTY SPOT. Resistance: 11590, 11620, 11680, 11740 and 11795. Support: 11553, 11495, 11475, 11430, 11370, 11325 and 11250. I would be using these levels to understand the strength of NIFTY for expiry trading decisions. MOST IMPORTANT Support level for the day is 11475 and Resistance is 11680 as per the Daily charts.
F&O Data for 3rd Sept expiry: Highest OI on CALL side at 11700 and 11600; on PUT side 11400 and 11500. More OI added yesterday at 11700 & 11650 CALLs and at 11500 and 11400 PUTs. PCR is marginally up from 0.86 to 1.05 and no change in Maxpain which is at 11500. So, going by OI data, expiry seems to be between 11400 and 11700. So, i would be looking at writing 11750 or 11700 or 11800 CALLs and 11250 or 11300 PUTs at market opening depending on the premium i will be able to collect. PLEASE NOTE these are just indicative strikes, market is always supreme so i would be ready to do required adjustments or take STOPLOSS if NIFTY moves violently in one direction.
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Disclaimer: Above analysis is just my point of view based on Technical Analysis, F&O Data study and my experience in the market. This information is only for educational purpose only, and it possible that my analysis may go wrong. So, take your own decisions or consult your Financial advisor before taking any trading decisions.
