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...