NIFTY is unstoppable and continued its upmove. With yesterday move, NIFTY rallied 970 points in 8 trading sessions which is unbelievable but that’s reality. It was RELIANCE turn yesterday to take NIFTY higher. Major concern for Options writers is VIX, which usually drops significantly when during uptrending markets but due to sharpest upmove VIX is not fallings and in fact it is raising. This is very tough for Options writer to manage. I have closed my positions in 8th Oct series with minor projects after many adjustments but it is one of the toughest non-directional trade i have managed.
Today’s weekly expiry in current spectacular conditions is going to be very interesting. Looks like NIFTY may open at 11800 which is previous swing high on 31st August and ideally should act as good Resistance, however NIFTY has not respected any Resistance levels in this mind blowing rally so creates a confusion whether even 11800 can atleast halt NIFTY move for today, Technically yes but let’s see.
US markets closed strongly yesterday, Asian markets are trading mixed and SGX NIFTY is indicating gap up opening by 40 to 50 points.
F&O Data Analysis (8th Oct series): Highest OI on CALL side at 11800 & 12000; Highest OI on PUT side is at 11500 & 11600. More OI added at 11850 & 11900 CALLs and 11700 & 11650 PUTs. No change in PCR it is at 1.3; Maxpain is up by 100 points and now at 11700.
Technically speaking: Support & Resistance levels for Positional Traders based on Daily Charts: Support: 11615, 11500 and 11430. Resistance: 11800, 11900, 12000, 12150 and 12250. Support & Resistance levels for today: Support: 11755, 11690 and 11620; Resistance: 11855 and 11900. For today Expiry, looks like 12000 CALLs and 11500 PUTs are good to start selling at opening (but need to manage in case of big moves). In case if NIFTY faces Resistance at 11800 then PUTs might be under pressure. So, need to trade cautiously. CALL writing also may turn risky if NIFTY breaks 11800 as well.
FIIs bought 1094 crores worth of stocks in Cash market yesterday. DIIs sold -1130 crores worth of shares.
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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
