July 16/25

Global
  • Dow closed red -135 points
  • Markets world over are flat to positive 0.3%.
  • SGX is in green with +70 odd points which is a little weird.
Option chain
  • Max pain at 10700. Total premium 247. So, the range becomes 10493 to 10987, calculated on the current closing of 10740
  • Max pain for Nifty Bank is 21500. Total premium 906. So the range is 20691 to 22503, calculated based on the closing of 21597.
FnO Data
  • FIIs have changed stance again. Exited longs and created shorts.
  • From the net positions standpoints, FIIs put longs is the biggest figure. Keep that in mind.

Charts & technicals
  • On the daily timeframe, yesterday was a hammer candle formation. i.e. we opened higher, slipped down but recovered significantly.
  • Nifty 20 DMA at 10541 for support.
  • Nifty 200 DMA at 10872 for resistance.

  • Nifty Bank 200 DMA at 21874. May act as resistance.
  • 50 DMA at 20452. Will work as support - just noting it here for now.
Plan for today
  • It was an expiry day yesterday, so short-covering was likely. Thus, relying on hammer candle a lot might not be the best of the ideas.
  • We took some time in breaking up from the 21450 regions. It should work as a support. Short can be initiated below that.
  • Longs can be initiated above yesterday's high of 21670
  • Also, there's results of HDFC Bank coming out on the weekend, so - there may be movement in that.

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July 6/25

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