Yesterday NIFTY went up in spite of weak global cues in the morning session and then consolidated during afternoon session. VIX throwed a real challenge for Options writers yday. All the options writers are surprised as VIX gone up by 4% yday in spite of steady raise in NIFTY followed by consolidation. We can attribute raise in VIX in afternoon session due to the announcement of PM addressing nation at 6 pm yesterday, but VIX raising in the morning session cannot be digested by many option writers. So, VIX has offset the benefit of Theta Decay. Many people closed or reduced overnight carry forward positions due to PM speech at 6 pm but it came a non-event as speech was about how to take of ourselves from Covid19 during this festive season.
US markets closed marginally up, European markets closed marginally negative, Asian markets are in green and SGX NIFTY indicating gap up opening by 30 to 40 points.
F&O Data Analysis (22nd Oct series): Highest OI on CALL side continued to be at 12000 & 11900; Highest OI on PUT side is at 11700 & 11800. More OI on CALL side added at 11900 & 12100 and on PUT side at 11900 & 11600. There was more PUT writing yesterday compared to CALL writing and highest OI was added at 11900, which was very aggressive. PCR increased to 1.05 from 0.88 as a result of more PUT writing; Maxpain is also up by 100 points and now at 11900.
Technically speaking: Support & Resistance levels for Positional Traders based on Daily Charts: Support: 11885, 11790, 11660 and 11500. Resistance: 11955, 12025, 12150 and 12250. Support & Resistance levels for today: Support: 11885, 11840 and 11790; Resistance: 11945, 11965, 12000 and 12025;
FIIs bought 1585 crores worth of shares and DIIs sold 1633 worth of shares in cash market yesterday.
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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.
