Premarket Capsule | Edition-09

Analysis of Nifty using Renko

On-going trend is Bullish as we have Higher-low getting plotted on the charts. Trend will 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.

High and Low both breached before 11 AM making the index go sideways. From the price-action of 15-min TF reflected sideways action at 11 AM itself. And this was further complemented by Total Open Interest (TOI).

Open Interest - Nifty 50

PCR is 0.9, which is 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

22500 seems to be a strong resistance so far.

Total Open Interest (TOI) Analysis

Both Weekly and Monthly TOI are aligned in one direction. However from OI data it seems that this is going to be short lived. TOI turning bearish will be a good point in building short positions in CE options.

Tomorrow we should plot 22400 Strike and observe until 9.30 AM for a clear trend to get established in the market.

FII Activity

Breadth Analysis of F&O Basket

The breadth of F&O basket has is 86%, 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.