July 3/25

Global
  • Dow closed +580 points (2.3%) yesterday.
  • Asian markets are flat to positive. +0.3%.
  • Asian markets will react to HongKong related news.
  • Dow Futures are flat to positive. DAX, FTSE also similar.
  • SGX is in green with 65 odd points.
Option chain
  • 10300 CE had OI increase of 8L but on the contrary 10300 PE had OI increase of only 1.5L
  • Instead, the writing on PE side was seen at 10,100 levels by 10L.
  • And, there's unwinding on PE side on strikes above 10300.
  • ATM strike premium net is 222. So 10090 to 10534
  • On Nifty Bank - 21500 is the immediate resistance.
  • 21000 is immediate support. 
FnO Data
  • The biggest number is call longs by Clients. Second is call short by Pros with other positions as bullish.
  • Signifying flat to positive opening.

Charts & technicals
  • On the daily timeframe, Nifty made a second consecutive doji candle. But with lowe lows and lower highs.
  • 10410 and 10193 are the levels to keep in mind for further moves.
  • Similarly, on Nifty Bank - 20935 and 21777.
Plan for today
  • Will our market react to yesterday's positive close by Dow?
  • FIIs went heavily short yesterday. Will they be forced to cover their shorts?
  • I should be keeping a tab on the OI updates today.
  • A risk-reward trade is to short in the opening if we get a decent gap up. SL will be 10410.
  • Today might be another day within the range if FIIs are able to control. But can very quickly give a range breakout trending move as soon as FIIs have to start covering shorts.

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July 2/25

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July 6/25

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