Nifty futures on the daily timeframe shows extreme indications as it tested the 3 Standard deviation band on Thursday, September expiry day. Sideways to short-term pullbacks are expected if Nifty Futures is able to hold quick flip short-term support zone 10959 level.
Nifty is trading around All time high. October Futures is more of one-sided movement with an approximate swing of 500+ points swing. The trading sentiment is holding positive across the timeframes (Daily, Weekly, Monthly). No weakness yet from the market internals perspective. Trading Positional Shorts could be still not a profitable one unless you understand the inventory conditions of the market participants.
The June Option series Open Interest picture shows 7500CE call writers are active so far which in turn reflects a possible resistance around 7500 on EOD basis. 7000PE on the put side has the higher open interest on the put side however far less when compared to 7500CE. As the option series is very new it is still very early to judge the based on the open interest view but still observing the open interest gives you more idea about this dynamic market.
Call writers are very busy in 2010 season. They had shorted 5300CE,5200CE,5100CE,5000CE right from 17th Jan 2010 onwards. And in the February season they started writing 5000CE on February 5 as there is a suspected 5/13 Weekly EMA crossover and then later they take one step forward and shorted 4900CE on February 11 and now […]