Hello guys, I hope you are doing good in your trading. Tomorow is weekly expiry. So let’s find out what we can expect based on the nifty and bank nifty chart today.
I shared on my twitter handle that 10800 is acting as a strong support level and we may expect some range-bound activity until nifty is trading between a range of 11200-10800.
Nifty Chart today:
Same we can see on the nifty chart today. In my previous weekly analysis report, I shared that 50% – 61.8% retracement levels are acting as reversal zones.
You can see nifty is spending some time here or can say taking support. Based on weekly levels, 10800 is important level which needs to hold for some range-bound activity here.
One more important pattern we should keep in mind, around 11200 nifty made a double top pattern, which is a strong pattern in terms of short term trend. So sell on rising should be our strategy until nifty is holding 11200.
As per my expectation, Nifty will trade range-bound here for some more time. Now from here, thre are two possibilities, either nifty will break 11200 and we may get a new reason to initiate a long trade or it will give us a breakdown from 11800 and hit our target of 11600.
Open interest analysis:
Based on option chain data, the highest Open interest stands at 11000 CE & 10800 PE, followed by 10900 CE & 10700 PE. PCR of all strikes is 0.7, which indicates an oversold market. PCR at 10750 stands at 3.42, which is acting as an immediate support level, PCR at 10900 stands at 0.39, which is acting as a resistance level. Equally, important indicator Option Pain is at 10850, indicating weekly expiry at 10850. A shift in option pain will provide further levels.
We can see there is huge open interest buildup at 10800 which indicates that 10800 is acting as a very crucial level. The trend is Down. So act accordingly
If you don’t know how to analyse open interest. Just enrol for our Option Strategies – A Mentorship Program.
Bank Nifty Chart today:
Now, look at the Banknifty chart. Banknifty is trading around its crucial support zone. If we look based on Fibonacci retracement level, 61.8% level already broke but not ready to give up.
We saw some smart recovery today. Is this because of the weekly expiry or Banknifty is taking support? What’s your view on it? share in the comment box
As per my analysis, I’m expecting some range-bound activity here until abnknifty is holding last week’s low (26560.60). A breakdown from last week’s low will give us new downside levels. Next level should be 25850.
Right now there is no sign of any recovery on BankNifty chart. Sell-on-rise should be our strategy. The overall trend is down, so act accordingly.
Banknifty Option Chain analysis:
Based on option chain data, the highest open interest stands at 27500 CE & 26500 PE followed by 28000 CE & 27000 PE. PCR of all strikes stands at 0.74, which indicates an oversold market. Individual PCR at 26900 stands at 3.94, which is acting an immediate support zone. PCR at 27200 stands at 0.39, which is acting as an immediate resistance zone. Option pain stands at 27100, giving us expiry level. Keep tracking this option pain level. A shift in option pain will provide a new standard for expiry.
We saw huge open interest buildup on the put side indicates that somewhere Banknifty is trying to take some support from lower levels. Will this recovery continues or we will get a new low this need to watch.
Post your comments in the comment box if you have a query related to Nifty and bank nifty chart today. You can ask any question related to options trading in the comment box.
If you need More real-time assistance on this Nifty & bank nifty chart today, Can open a trading account with us and you will get real-time assistance on every month on these hedging strategies. You can contact us on WhatsApp through the button on the left side of your screen.
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.