Nifty Open Interest Analysis

[jamit_05]

Amit Does Infy OI anlysis suggest something?

The absolute Top for Infy Apr series would be 2400. (2400 PE is selling at Rs.28.. no bad! 1% in 10 days).

A bottom would be 2250 or 2200.

In any case, buying the stock in this phase is risky.

 

[jamit_05]

Bulls are still in strong control. However, today's rally has presented a very good opportunity to short as they will have a good RR. Simply, because the upside is capped to 5700 and downside to 5500. Any further upside will attract strong supply... and support will be found only at 5555.

 

[spkreddy]

5600 put above 70 L so amit ji can take 5600 as support

 

[jamit_05]

5600 put above 70 L so amit ji can take 5600 as support

No Sir... not yet. 5600 has shown itself to be unreliable in the entire series, Unlike 5500 and 5700.

 

[spkreddy]

amit ji..any view on tatasteel

when i check nse website 5600 put shows OI above 70L

 

[jamit_05]

amit ji..any view on tatasteel

when i check nse website 5600 put shows OI above 70L

Yes, and very strong ones.

It is very bearish in the weekly and daily timeframes. Shorting is best advised.

 

[Option.Trader]

Miss the market one day and it changes on a dime. OI suggests an expiry range between 5600-5700. Massive OI pileup on put side suggesting bullish undertones

 

[jamit_05]

From the look of the Option Table it may appear that the Bulls have all the control.

Well, yes. But only for today or tomorrow, NOT in the higher time frames. For bulls to take over the trend on the daily time frame, they will have to break a Daily pivot on closing basis. Till that happens, this is only a pullback, and a good one at that.

Trend traders must use this opportunity to look for short entries. The bleaker the chances look the bigger the reward.

 

[jamit_05]

The much needed Gap Fill Done... !!

 

[jamit_05]

Options Table, as seen towards EOD.

5600 PE has put on a massive 40 L in OI.
Inspite of the enourmous strength showed by bulls, 5700 CE writers are unruffled. It was apparent from early on that 5700 will be a reliable resistance.

This makes me think, if there is a fall before expiry then 5600 PE writers are going to cause a commotion running for the door.

But, for now Bulls have control. And have had so for past two sessions.