Last week was clearly bearish week of market. NIFTY couldn’t maintain its Uptrend and BANK NIFTY couldn’t continue it’s up move after breakout from its Upward channel and witnessed sharp decline after kissing 200 DMA level.
NIFTY formed a BEARISH ENGULFING pattern in Weekly chart. If NIFTY breaks below 11300 level then NIFTY may test 11100 and 11890 levels. BANK NIFTY is heading towards 22500 level as it broke 23400 level on Friday. Here is important levels for NIFTY based on Daily charts. Resistance: 11585, 11680 and 11800. Support: 11300, 11110, 10890 and 10550.
There was a sharp correction in US markets last week led by Technology stocks. European markets also fell. Asian markets are trading mixed and mostly flat. SGX NIFTY indicating flat opening.
F&O Data for 10th Sept expiry: Highest OI on CALL side at 12000 and 11500; on PUT side 11000 and 11300. More OI is added at 11500 on CALL side and 11000 on PUT side. Clearly more CALLs are written on Friday compared to PUTs. CALLs also rolled down to 11500 and 11400 strikes. PUT writers winded off their positions at 11400 and shifted to 11000. PCR dropped to 0.7 from 0.93 and Maxpain is down by 100 points and now at 11400. As i mentioned on Friday both PCR and Maxpain went down on Friday. VIX was UP by 8% on Friday. Initiated BEAR CALL SPREAD strategy on Friday in 17th Sept series.
Both FIIs and DIIs sold on Friday. Usually DIIs tend to buy when market is falling however DIIs also turned net sellers.
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Disclaimer: Above analysis is just my opinion based on Technical Analysis, F&O Data study and my experience in the market. This information is 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 or investment decisions.
