July 19/25

Global
  • Dow closed +159 points (0.6%) yesterday.
  • Asian markets are up.
  • Dow Futures are positive by 110 points. DAX, FTSE are positive by 0.4% or so.
  • SGX is in green with 28 points.
Option chain
  • There was massive put writing at 11100 and 11000 strikes.
  • There was unwinding and weaker writing in call options.
  • Consequently, PCR is extremely high at 1.71 for this expiry. 
  • Max pain at 11100 with net premium of 161. Range being 10939 to 11261 basis the option strike.

  • Nifty Bank PCR is also in the higher range at 1.11
  • Net premium for 22500 is 625. 23125 being the upper end.
FnO Data
  • FIIs seem to be all in bullish.
  • Point to note, they still haven't unwound as many shorts. They are probably playing this hedged mostly.
Charts & technicals
  • If we draw a trendline connecting the highs of Nifty at 12430. Resistance comes at 11271.
Plan for today
  • FIIs look to be playing hedged.
  • Risk-reward not in a favour of initiating huge longs at this level.
  • Trendline resistance and option chain range coming around 11260-11270. Interested in initiating an ITM short there if the chart allows.
  • Wednesday's volatility will be there.
  • Modiji was supposed to come live today. Need to confirm.


     

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