Nifty & Bank Nifty Chart Today 23rd July 2019
Hello Guys, We saw some range-bound activity this week till now. Both Nifty & Bank Nifty is looking weak on charts but taking some support at lower levels. Before analyzing Nifty & Bank Nifty Chart today, let’s look at some actions we saw in the market today.
Daily Market Update:
Benchmark indices slipped for the fourth consecutive session as weak corporate earnings, hinting at an economic slowdown, kept investors’ sentiment muted. Nifty settled the day at 11,331.05 levels with a loss of 0.13%. The India volatility index settled at 13.29 levels up by 2.15%. Sectorally, NIFTY PSU BANK was the biggest loser that dragged around 3% followed by AUTO, FIN SERVICE and PHARMA that lost around 0.70%. NIFTY REALTY and FMCG were the gainers, up around 1%. As far as stocks are concerned, POWERGRID, KOTAK BANK, and HEROMOTOCO were among the top gainers while SBIN, IBULHSGFIN, and HDFC were among the top losers. let’s look at the Nifty Chart first.
Nifty Chart Today:
After giving a successful breakdown from long term Trendline support, Nifty is taking some halt around 11350 levels. If it manages to sustain below 11350 then next support zone should be 11150 – 11000.
Personally, I’m not expecting to see nifty below 11000 but as you see there are lots of uncertainties in the market on the global front as well as domestic fronts. Recession in the US & huge selling by FIIs are the major reasons for this sell-off.
Market condition is not looking good. So what I suggest is, instead of taking unnecessary risk, we should focus more on “How to protect our capital first?” Take safe bets and keep your positions with a proper hedge.
Nifty PE still trading at 27.77, which is also a high value. In the previous downfall, We saw mostly Mid-caps & small-caps fall sharply but Large-caps saved the market and manage to generate a positve return. This time you can see most of the large-Cap stocks already gave a sell signal and ready to give some correction from higher levels.
So we can say that the Market is weak on both the fronts technically as well as fundamentally. So better keep your positions with a proper hedge.
Nifty option chain:
Based on Nifty option chain data, the highest open interest stands at 11400 CE & 11300 PE followed by 11500 CE & 11200 PE. PCR of all strikes is 0.80 which is a neutral zone. PCR at 11400 stands at 4.73 which is acting as an immediate support zone, PCR at 11500 stands at 0.37 which is acting as an immediate resistance level. Equally, important indicator Option Pain is at 11400, indicating expiry at 11400. A shift in option pain will provide further levels. For more about Put Call Ratio (PCR) Visit here
We saw a huge open interest buildup around 11300 PE(around 14 lakh) & 11200 PE, indicating the market is trying to take some support around 11300 for this expiry. We have to track these numbers more closely to understand the market trend and breath.
Bank Nifty Chart today:
Huge selling in PSU Banks drag bank nifty to lower levels till 29100. In the last three trading sessions, we saw a huge selling in these stocks. Giants like HDFC BANK also giving a negative signal which is not a good sign for the bank nifty.
Now Bank Nifty is trading around 29100. A breakdown from 29100 – 29000 zone will drag Bank nifty to 28850-28000 zone which will act a strong support zone. if we get a breakdown from 28000 then we’ll be in a deep bearish trend.
MACD & RSI both are giving a bearish signal and there is no sign of any recovery on bank Nifty chart. Here It’s not advisable to initiate a fresh sell position. If you want to initiate a sell position, you should wait for some recovery. Those holding a short position can keep their positions but book some profit is also not a bad idea.
Bank Nifty Option Chain:
Based on Bank Nifty option chain data, the highest open interest stands at 29500 CE & 29000 PE followed by 29600 CE & 29300 PE. PCR of all strikes stands at 0.52 which is a neutral zone. PCR at 29000 stands at 3.11, which is acting an immediate support zone. PCR at 29500 stands at 0.31 which is acting as an immediate resistance zone. Option pain stands at 29300, giving us expiry level. Keep tracking this option pain levels. A shift in option pain will give us a new level for expiry.
Strategy for this week:
I suggest we should initiate a butterfly strategy, keeping option pain in the center for the next 2 days. Do not keep any unlimited downside risk strategy for overnight. Remember one thing ” whatever strategy you are making, your downside risk must be locked.”
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DISCLAIMER: – we are not a SEBI research analyst. Views posted here only for educational purposes. There is no liability whatsoever for any loss arising from the use of this product or its contents. This product is not a recommendation to buy or sell, but rather a guideline to interpreting specified analysis methods. This information should only be used by investors and traders who are aware of the risk inherent in securities trading.
8+ Years working as a derivative trader, Option Writer, Blogger, Trader by passion, Keen Follower of Indian share market