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- Premarket Capsule | Edition-04
Premarket Capsule | Edition-04
A Comprehensive Analysis of Nifty, Banknifty, and Open Interest
Kaushik Akiwatkar
March 21, 2024
Prep for tomorrow in less than 5 minutes:
1. Analysis of Nifty 50 using Renko charts
2. Analysis of Open Interest
3. FII Activity
4. Breadth Analysis of F&O Basket
5. Sectoral Breadth
Analysis of Nifty using Renko
Nifty 50 (0.15% 1-min TF)
As shared in yesterday’s PMC I was expecting the market to consolidate for few trading hours before it further continues the bearish trend.
21700 is an important level to watch for coming session. Break below 21700 will be super bearish. Likely resistance at 22500 levels.
Open Interest - Nifty 50
Nifty 50 (Open Interest)
Based on Open Interest data, there's notably more Put writing than Call writing. The Put-Call Ratio (PCR) stands at 1.11, signaling a bullish sentiment. The maximum Call writing is at 22700 and maximum Put writing is at 22000, indicating support levels. Based on today’s OI data, 22500 and 22700 level could short term resistance and 22000 could be short term support level although weak.
Tomorrow’s OI analysis will be important to watch.
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FII Activity
Value | Analysis | |
|---|---|---|
Weekly PCR (Nifty) | 1.11 | Bullish |
OI Analysis | 22500 CE (Resistance) 22000 PE (Support) | Option chain is getting formed, we shall analyze this further in Weekly newsletter. |
FII Cash | - 1826.97 Crores | Bearish |
FII Index FUT | + 443.06 Crores | Bullish |
FII OPT | Avoiding this data as first day of next expiry | — |
Breadth Analysis of F&O Basket
Medium to Short term breadth analysis
The breadth of F&O basket has improved to 47% from 27%. Overall sentiment remains week as the trend of Nifty on Daily TF OHLC is bearish and breadth is also trading below 50%. We may get good shoring opportunity in coming days.
Sectoral Breadth
Sectoral Breadth on 1% PnF
Look for long opportunity in Outperforming stocks of outperforming sectors in Neutral territory of breadth. If markets are bouncing back from these levels, these are the stocks which will form flying pattern based on Relative Strength and will be interesting to participate in those stocks.
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