Premarket Capsule | Edition-06

A Comprehensive Analysis of Nifty, Banknifty, and Open Interest

Kaushik Akiwatkar
March 26, 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)

Nifty is trading in the zone of 21900 to 22100. Break below 21900 is bearish and price above 22100 is Bullish. Anything in between this zone is sideways.

Nifty 50 (15 min TF)

Nifty traded within the range formed in the first 15min. Intraday trader should wait for the range to break in the direction of TOI or PCR

I have explained the concept further in my YouTube video

Open Interest - Nifty 50

Nifty 50 (Open Interest)

PCR is in the neutral territory at 1.05

Max PE writing is observed at 22000, suggesting strong support. Break below 22000 levels will bring the market swiftly down. Max CE writing is seen at 22500 reflecting resistance.

Markets may be volatile around 22000 levels and can give whipsaw for options trader near these levels.

FII Activity

	Value	Analysis
Weekly PCR (Nifty)	1.05	Neutral
OI Analysis	22500 CE (Resistance) 22000 PE (Support)	Neutral Option chain spread of 500 pts. Markets to be volatile
FII Cash	—	—
FII Index FUT	—	—
FII OPT	—	—

Breadth Analysis of F&O Basket

Medium to Short term breadth analysis

The breadth of F&O basket has improved to 68%. Overall sentiment remains weak as the X% breadth on higher TF (3%) is sloping downwards. We may find good shorting oppurtunities in relatively underperforming stocks. Shorting the market should be done with precision as the bounce can be lethal and you may get trapped.

Sectoral Breadth

Sectoral Breadth on 1% PnF

Nothing much can be deciphered today from the sectoral breadth today.

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