Nifty had done a “W” shaped price pattern so far during Nov 2016 to till date which is very much visual from the charts. Currently price is trading around the Intermediate resistance zone 8315 levels as Sentimental RSI is currently at the extreme. Previous Top Down Analysis indicates that still price is showing a consolidation pattern in both Daily and Weekly Charts.
Price closing above 8315 on EOD basis indicates a possible trend follow up towards the island reversal zone 8515 zone. India VIX is currently trading below 15 handle. Upcoming events like Union Budget, State Assembly Polls are likely bring increased volatility. Volatility is expected to rise from the second half of Jan 2017.
Nifty Options – Open Interest Lookup
Nifty Options Data shows that 8000 and 8200 puts are being written for the current series and 8400 call writing shown as this point however the confidence level of 8400CE writers are not that great compared to the put writers at 8000. Jan series is expected to expire above 8000 and best case scenario is likely above 8200.