Nifty Futures closed with a negative note despite evading Turkish Lira crisis and Chinese Tradewar & slowdown fears. USDINR is currently trading around 70.30 hits a fresh all-time high on 16th Aug 2018. Nifty Futures trading sentiment and market profile sentiment holds negative with immediate short-term resistance around 11450.
Volatility is a bit elevated with IndiaVIX maintaining 13.65 levels. Call writers are active at 11400CE & 11500CE that puts immediate EOD resistance at 11400 in Nifty Spot and Expiry Support comes around 11000-11100 band.
When comes to Global Markets Shanghai Composite & Hang Seng trading at a fresh 2018 low. Which brings a greater divergence between Chinese markets and Indian markets.
On Thursdays trading Nifty Futures opened lower in line with the global sentiment. Initial trading confidence is not strong from the sellers. However mid of the day sellers came and push the price downwards and later in the last 45 min buyers came and supported exactly at the previous week low reference.
Value build lower on Thursday trading with Poor high formation at the days top. G2 High formed at 11480. However, G2 High is not an immediate focus as long as trading sentiment remains negative.
Weak Short term buyers are witnessed in the last 3 trading sessions this week. Thus far momentum sellers are lagging in the August expiry contract. Bias is still focused on the downside with a possible test towards 11354 (AB Poor Low). Gap Support at 11181 and G2 Low at 11118.8
From the participation OI details both Clients and FIIs shown major interest in buying Index Futures till to date for this series. And it is surprising to see FIIs maintaining historically low open interest when comes to Index Call Options.