Premarket Capsule | Edition-08

Analysis of Nifty using Renko

On-going trend is Bullish as we have Higher-low getting plotted on the charts. Trend is turn bearish to sideways below 22250. Resistance of 22500 is an important level to note. Break above 22500 will move the price to further higher levels.

Low & High of first 15 min candle was breached. High was breached in the next candle itself. However the low was breached in 1 PM Candle. From the price-action of 15-min TF reflected sideways action. And this was further complemented by Total Open Interest (TOI).

I have explained the concept of first 15 min candle further in my YouTube video

Open Interest - Nifty 50

PCR is 0.97, which is neutral to bearish

Max CE writing is observed at 22500, suggesting strong resistance. In the coming session, markets may move lower. This expiry seems to be sell Calls on bounce till the time we have max CE writing at 22500

Total Open Interest (TOI) Analysis

TOI of weekly seems to be bearish, however if you observe Monthly TOI for April expiry is Bullish and holding its position. This is a classical case when markets goes sideways. When Weekly TOI and Monthly TOI are positioned in the opposite direction, markets tends to remain sideways. Clear trend will emerge when both of them align themselves in one direction.

FII Activity

Breadth Analysis of F&O Basket

The breadth of F&O basket has is 83%, which is Overbought zone. Long trade in F&O basket should be taken with caution. Outperforming stocks at pullback zone can be good to keep in watchlist.