USA Markets were closed yesterday on account of USA independence day and we expect Indian markets to remain weak as USA has stated that they will not supply AI chips to China and China has stated that they will not provide metals like Germanium which are used for making chips. Moreover FOMC meet historic comments are to be released and whenever past it has happened has led to fall in markets worldwide. Nvidia will be affected due to Chinese decision to not to supply metals for chips.
As we stated yesterday, there are too many gaps in the rally with stock rotation taking place to manage Index levels. Many have asked me, why the markets are not correcting even at high PCR levels. The reason is option volumes are divided in a wide range due to option strategies. Once the range narrows, there is a possibility of a trap and hence a reaction to PCR. Puts are being sold at 19300 and thus 19200 appears to be a good support.
Make money on a daily basis using our bank nifty option tips as we trade less and trade accurately.
On the weekly data points, VPOC for the week is much below the index levels. This should not sustain. But, the markets are supreme and we follow price action on the screen. Trade small in terms of quantity and targets and manage risk accordingly.
#Nifty. Support is placed at 19250/ 19175.
#BankNifty. Support is placed at 45090 and 44850.
FII DATA as on 04/07/2023
(fig in crores) Cash Market
FII Net 2,134.33
FII Buy 8,783.66
FII Sell 6,649.33
Advisory: India Vix : 11.70
FIIs were net buyers in the cash market segment to the tune of Rs. 2134 crores. Simultaneously, in Index futures, they bought worth Rs. 1173 crores with an increase in open interest, indicating long formation. On the derivatives front, we witnessed long addition in key indices consecutively for the second day of the week. On the options front, the highest OI concentration is seen at the 19300 put strike, indicating a nearby strong support zone. While on the higher end, scattered piling of OI is seen from 19400-19600 call strikes, indicating a series of resistance for Nifty. Simultaneously, the stronger hands continued their buying spree in cash and future segments, resulting in a surge of the ‘Long Short Ratio’ to 72% from 70%. Considering the mentioned data, we remain sanguine in the market and expect any dip toward the support zone to augur well for the bulls.
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should Trade Less But Trade Accurately & this is Achieved with our Tip.
