NIFTY was volatile yesterday with zig zag moves but made another new all time high of 13997 and closed strongly. US markets closed marginally up, European markets slightly down, Asian markets are trading mixed, US & European futures are trading flat and SGX NIFTY indicating flat opening with slight negative bias by about 20 points.
F&O Data Analysis (31st Dec series): Highest OI is at 14000 & 14100 CALLs and 13900 & 13400 PUTs. Highest OI addition is at 14100 & 14050 CALLs and 13900 & 13400 PUTs. PCR is slightly up to 1.39 from 1.31; Maxpain is up by 50 points and now at 13850. Looking at F&O data as on today market participants are expecting NIFTY to close between 14100 and 13400 today.
Technically speaking: Support & Resistance levels for Positional Traders based on Daily Charts: Support: 13860, 13775, 13500, 13330 and 13130. Resistance: 14000, 14100 and 14200. Support & Resistance levels for today based on Hourly charts: Support: 13950, 13900, 13860, 13810 and 13775; Resistance: 14000, 14050 and 14100; I am expecting good premiums today as VIX is high. For today expiry 14200 and above CALLs might safe to write at opening. On PUT side any severe fall may be difficult to manage but perhaps strikes below 13600 may be okay if NIFTY continues its uptrend today. As always, expiry should be traded very cautiously due to Gamma risk and should be in a position to manage their positions through adjustments very quickly in case of big moves in underlying.
FIIs bought 1824 crores worth of stocks and DIIs sold 587 crores worth of stocks 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.
