analysis for 2023-05-18
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OCILATOR
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Nifty Market Analysis: Bearish Sentiment Prevails as Short Build-Up in Calls and Short Covering in Puts Influence Direction Analysis :
Overview :
Headline: Nifty Market Analysis: Bearish Sentiment Prevails as Short Build-Up in Calls and Short Covering in Puts Influence Direction
Key points:
– Nifty value on May 17: 18181.75, PCR: 0.62
– Option open interest for May 18 expires: Total Calls OI: 23M, Call OI change: 83M, Total Puts OI: 60M, Put OI change: 1.3M
– Strike 18100: Short build-up in PUT OI (1.4M change) and short build-up in CALL OI (960K change)
– Strike 18200: Short build-up in CALL OI (8.3M change) and short covering in PUT OI (-52K change)
– Option Chain: Short build-up in call side OI and short covering in put side OI
– Max Pain: 18200, suggesting potential gravitation towards this strike price
– Oscillators: 0 bullish signals, 8 neutral signals, and 2 bearish signals
– Moving Average: 7 bearish signals, 2 neutral signals, and 8 bullish signals
– Support and Resistance Levels: Strong resistance at 18209 and 18350, strong support at 18050 and 18100
Overall, the Nifty market shows a bearish sentiment with short build-up in call OI and short covering in put OI. The oscillators and moving averages also indicate a bearish trend. The max pain value at 18200 suggests potential gravitation towards this strike price. Traders should watch the strong support and resistance levels for potential price movements.
Research & Analysis
Analytical Report on the Current State of the Nifty Market:
1. Introduction:
The purpose of this report is to analyze the current state of the Nifty market and provide insights into its potential direction. The data that will be analyzed includes Nifty value, PCR, option open interest, max pain, oscillators, moving averages, and support and resistance levels.
2. Nifty Value and PCR:
On May 17, the Nifty value was 18181.75, and the PCR was 0.62. The low PCR ratio suggests a bearish sentiment in the market.
3. Option Open Interest:
The option open interest for May 18 expiries shows that the total call OI is 23M with a change of 83M, and the total put OI is 60M with a change of 1.3M. The data for specific strike prices, such as 18100 and 18200, indicates short build-up in PUT OI and short build-up in CALL OI for the 18100 strike, while for the 18200 strike, there is short build-up in CALL OI and short covering in PUT OI. Overall, the option chain shows short build-up on the call side and short-covering on the put side.
4. Max Pain:
The max pain value is 18200, indicating that the market may gravitate towards this strike price, causing maximum pain for option buyers.
5. Oscillators and Moving Average:
The oscillators show that 0 signals are bullish, 8 are neutral, and 2 are bearish, while moving averages signals are mostly bearish with 7 signals bearish, 2 signals neutral, and 8 signals bullish.
6. Support and Resistance Levels:
The strong resistance levels for the Nifty are at 18209 and 18350, while strong support levels are at 18050 and 18100.
7. Conclusion:
The data analyzed suggests a bearish sentiment in the Nifty market, with short build-up on the call side and short-covering on the put side. The oscillators and moving averages also indicate a bearish trend. The strong support and resistance levels suggest potential range-bound trading, while the max pain value of 18200 suggests that the market may gravitate towards this strike price. Overall, the Nifty market is expected to be bearish in the near term.