I had noted the action of today to form a "p" shaped profile. We have seen earlier how a "b" shaped profile results in a stalling of an upmove. A "p" shape on the other hand can be a pre-cursor to longs unwinding in a stock or index.
Let's have a look :
The 2 day profile shows a top heavy distribution in the shape of a "p" enough to get us profilers to think about short set-ups in the morning.
5377 will again be a point of reference to the upside. Of course, as in every close, the open needs to be monitored to ensure that the market is thinking the same!
I also ran a quick check on the open interest for June and I found something particularly interesting at the 5400 strike.
Have a look :
Notice the buying in the 5400 PE of 371000 and the selling in the 5400 CE of 350900.
Smart money was moving into short positions by the close today.
So Profile and Open Interest point to a move downwards tomorrow.
Let's see how the day unfolds..
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5 comments:
Hi,
I tried Quote Tracker v.3.9.7 software for adding Price by volume indicator for Nifty index. No such indicator available to select for index where as same is available for equity stocks. Is it possible to get Price by volume for nifty. If not, any free software for downloading?
Thanks in advance,
Bose
Chandra,
The spot does not have a vol component.
You will have to try with Nifty futures.
The gap lower will rob us off some easy trade opp.
Those who held shorts at the close should have made some easy coin. :) .
Good info on 5400 Options Shai.
There were 33L 5300PEs written yesterday in the price range of 16-34. They will be the losers if expiry happens much below that.
Need to see if some of them unwind at end of today.
Can your provide VAL/POC/VAH for yesterday?
New post done.
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