Sunday, March 6, 2022

Nifty & Banknifty Range As Per Chart + Option Writing

Friends, Vladimir Putin is playing the role of big bear in all markets. That is the reason we are facing market volatility nowadays. Russia becoming aggressive day by day therefore we are burning in this fire. In this panic situation, we have to avoid a day or short term trading and stick to positional or long term.

Below is the daily chart of Nifty 50, index is trading near 16245 and the overall trend is down. On the 24th of February, the index has broken important support of 16600 and closed at the day low. The next day gap up and closed at day highs. Friday was a gap down and closed neutral after high volatility. As on chart, the coming week's range is 16000 and 16500. However, we have to keep eye on War News because that is impacting more right now.

Below are the top 15 PUT option strike prices where the highest money is invested. As per this PE data, Nifty has good support of 16250/16150, but selling percentages are very low. So we cannot consider these as strong supports.

The CALL writing data is not too strong, only three strike prices are having selling between 1-2%. As per the data resistances are 16300/16400. For this week range is very narrow which is 16400-16100.

The below chart shows us that the bank index has tested the crucial support of 34094 and made a high around 35097. After the zic-zac session index closed near the opening price and the match was a tie. The range for the coming week is 34000 and 35000.

As per PUT option writers, below highlighted are support levels and the highest invested cost is at 34000.

CALL writers are saying every step is resistance i.e. 34500/34600 up to 35000.

Above is all about what charts and options data are saying, but our priority should be Vladimir Putin J.



Disclaimer: The contents produced here are purely for educational purposes. They should not be construed as buy/sell recommendations. I am not a SEBI registered Analyst or Investment Advisor. Readers are advised to consult their Investment advisor before taking any decisions based on the above write-up.


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