Nifty Closed below its nearest resistance what does it suggest?
Trend for nifty is completely bearish on 26 October. Opened flat and started falling continually and closed below its support level which indicates further weakness.
Global market Dowjone is also down by more that 2.5% due to US elections results ahead.
we mentioned in our previous posts that this will be very important factor for this week movement as it has created fear among traders.
Every other data suggest bear trend continuation however keep this in mind that this is only for short time. So this is advisable not to hold future short position for long time keep booking profit on all fall and be very cautious.
Lets talk about option data what these data tells about today's market?
By now you must have understood after seeing the above image what it tells? if you read my blog daily.
Let me explain Call side analysis first:
Heavy short build up can be seen on all above strike price which means call writers are more confidence on bearish view. 11900 has got highest Change in OI and heavy volume on 11800. Writer are very aggressive on these levels.
Put Side data analysis:
It very clear on put side no confusion every strike price have got Long build up created which clearly indicates one side direction view among traders and that is bearish.
And if do not even do all this analysis our set up doing for you automated it suggesting intraday and weekly view is bearish.
Tomorrow view is more one directional and it can only be changed if we get any sort of good news or any positive event that can change traders view which seems very likely.
FII &DII Activity
It seems that FII also started pulling out money from the market though they have not pulled hefty amount but if they continue doing so we may see market at below 11600 in today or by tomorrow session .
FII started shorting index future and option or started booking profit since 22nd October and also notice heavy sell off on mutual fund data on 23rd October that is not good sign for investors.