1. After looking at options writers flip-flopping every couple of days, I am tempted to use some expletives but will refrain as this is a public forum. Although there has been no cosmetic damage to the options table, there definitely seems to be some structural damage done to the options table. Massive sum of 25L puts covered at strikes 6000-5600, with the most (12.8L) covered at 5600PE.
2. By no cosmetic damage I meant that 5800-6000 remains the range, with 6000 the strong resistance
3. 5900 is a perfect 50-50 level now but with a negative bias due to put covering.
4. 5800 still remains the strong support, but the adamant call writers who wrote those 23L calls on 9th Dec have still not covered 12L yet.
5. PCR has now dipped to 1.20 but PCR at strikes that matter (5900/6000) is getting shaky.
Nifty Futures:
2.43Cr OI down 2.8% (7L shares cut)
Banknifty Futures:
13.9L OI up 12% (1.5L shares added) - That makes it 14% OI up for last two days and the largest 2 day OI increase seen in more than a month. The only time I have seen a 10% OI increase on a single day is on the Friday (9th Sep) before the big breakout in Banknifty (from 11380 to 11700+). And that OI increase was about 2.7L in 1 day.
What's the silver lining?
CNXIT is pushing for 20-month high. And here's another interesting stat - RELIANCE, INFOSYSTCH, LT are the three stocks with highest weight-age in Nifty. Together they account for 25.6% of Nifty's weight
Whereas - ICICIBANK, HDFCBANK, SBIN account for 16% of weight of Nifty.
Even though Banknifty is down almost 15% from its peak, Nifty is down only 5% from its peak. That speaks of the support the other stocks are giving to Nifty while the banks are pulling it.
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8 comments:
Hi Girish,
The point on IT major share in Nifty against the Bank proportion is a good point. Thanks for bringing that out ...
:) publicforum saved as from some choice vocabulary i suppose :D
Moh,
IT gaining at the cost of banks is good from a sustainability of index at current levels. But I still think ICICIBANK/RELIANCE are the ones to watch for bulls hoping for a 6300+.
Its a global phenomenon too: NASDAQ 100 is leading S&P500 and its even very close to 2007 highs.
And yes - public forum made me not use such words which are already part of my daily vocab :D
Thanks Girish!
As for those colorful words, you can always use them in your trading plan. :)
LOL - RM,
I was almost about to use them in yesterday's EOD update, but I thought some of you may get offended.
Now I have a free license :)
So I take a pledge to keep Shai/Viren's blog clean forever and shared docs are ok
I feel like venting some steam out now..
50 mins gone waiting for the decision.
that OI buildup at 12000 is gone...ltp of 60 now.
So it was writing after all.
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