Rajandran R Founder of Marketcalls and Co-Founder Algomojo. Full-Time Derivative Trader. Expert in Designing Trading Systems (Amibroker, Ninjatrader, Metatrader, Python, Pinescript). Trading the markets since 2006. Mentoring Traders on Trading System Designing, Market Profile, Orderflow and Trade Automation.

Banking stocks Leads the Decline

55 sec read

Nifty fell on late wednesday and banking stocks led the decline.The Bank Nifty fell 1.9% as yields on bonds rose, heightening concerns over the lenders’ debt holdings. Banking stocks such as ICICI Bank, State Bank of India (SBI), Punjab National Bank, Bank of India, Axis Bank and Canara Bank are down 2% each. IDBI is the top looser and lost more that 6%. It should be noted that Reserve bank of India on Tuesday cuts banks’ statutory liquidity ratio by 50 bps to 22.00 pct of deposits from August 9 and leaves repo rate unchanged at 8 percent

Nifty Hourly Spot Charts
Nifty Spot

 
Nifty and Bank Nifty hourly charts currently in positional sell mode. And bank nifty very recently turned to positional sell mode on the later half of the wednesday trading session. Currently the resistance zone comes very close to 7792 and 15585.7 respectively. Reverse your position to positional buy mode if the support zone breaks on hourly basis.

Bank Nifty Hourly Spot Charts
Bank Nifty Spot

India VIX Hourly Charts

India VIX still maintains the positional sell mode since mid of july 2014 and currently the resistance zone comes under 15.73. Any breakout would like to show increased volatility in the market. Currently no much significant movement in India VIX.

India VIX

Nifty Open Interest Lookup
Currently both 7300PE and 8000CE holds equal amount of open interest indicates market for current expiry close is likely to be little broad ranged. And option writers are expecting nifty to show volatility and it could trade in the range of 7300-8000 range. Lot of Volatility expectation from option writers for current month expiry.
Open Interest

Rajandran R Founder of Marketcalls and Co-Founder Algomojo. Full-Time Derivative Trader. Expert in Designing Trading Systems (Amibroker, Ninjatrader, Metatrader, Python, Pinescript). Trading the markets since 2006. Mentoring Traders on Trading System Designing, Market Profile, Orderflow and Trade Automation.

Bearish Option Strategy: Nifty Hedged Puts – Nov 2020…

Structurally Nov 2020 series is closing the long pending island gap reversal which is an investing reference. However, emotions are running high during the...
Rajandran R
42 sec read

What Could Possibly Go wrong with Nifty?

As of last 9th Oct 2020 closing of Nifty (11914), PE ratio stands at 34.71. By any means it indicates euphoric markets. Recently there...
Rajandran R
1 min read

Nifty Futures Short Term Overview – July 2020 Series

Markets are trading calm compared to the Month of March, Apr, June 2020. Volatility cooled off and trading ranges get smaller and smaller. However,...
Rajandran R
25 sec read

Leave a Reply

Get Notifications, Alerts on Market Updates, Trading Tools, Automation & More