F&O Market Report for Friday 14 Aug 2020

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F&O Data Analysis for Friday , 14^th Aug 2020

This blog contains information and major data points regarding Futures and Options which may be helpful in taking positions or day trades in Markets.

Our major focus will be on Nifty 50 and Nifty Bank. It is recommended to use Desktop-Version of site for better view. And don’t forget to read “AAJ KA GYAN” at the end.

 

Futures and Options data of Index.

Index	Last Price	Chg(Rs.)	Chg(%)	Chg in OI(%)	Prem./Dis.	14-Day High	14-Day Low
Nifty 50	11323.45	5.65	+0.05 %	-0.16 %	+23.00	11376.75	10883.40
Nifty Bank	22217.15	-99.15	-0.44 %	-4.87 %	+20.80	22443.95	21085.35

 

Index	Max Pain	Put Call Ratio (Weekly)	Put Call Ratio (Monthly)	Highest OI Call Put	Increase in OI Call Put
Nifty 50	11300	1.00	1.49	12000 10400	12000 10400
Nifty Bank	22200	0.75	0.85	22500 22000	24500 20500

  

Overall F&O Cues :-

·         Addition of OI in Index Options seen after weekly expiry

·         Unusual increment in contracts on Far-Out of the Money Options shows that something big is being cooked inside

·         Heavy erosion of Premiums in Futures Contracts as well as on Options was seen

·         Implied Volatility on Nifty Options came below 20 and that in Nifty Bank below 40

·         S&P 500 VIX (Fear Index) fell below 25 is positive

·         Option Chain is bit confusing as new contracts are being added

·         PCR and Premiums shows an Upmove in Nifty till 11500 levels

·         Bank Nifty may face major resistance near 22500, after which more upmove can be seen

·         Global Cues, however are Neutral

·         One must wait for more clarity in coming days to initiate a trade on either side

·         More puts are being added in monthly expiry contract which will, at some point, make the market overbought

·         Taking less or no trades until clear direction will be rewarding

 

 

Overall, markets are positive with broad buying in all sectors. Nifty Bank is at 15 day’s high which is positive and more upmove can be seen after 22500 level.

11000 and 21500 are major supports for Nifty and Nifty Bank respectively. Taking less positions overnight is advised as domestic institutional investors are continuously selling making it a supply zone. A upmove may be followed by a sharp decline as PCR rises to 1.7-1.8 in coming days so, STAY CAUTIOUS.

Currently not holding any position. Exited Bull Put Spread today, waiting for clear view to initiate spread.

 

AAJ  KA GYAN :-

Never regret if you have missed buying some stock at a certain price, ‘cause what goes around comes around.

And if it doesn’t comes around then remember these lines from Harivansh Rai Bachchan :

मन का हो तो अच्छा... मन का ना हो तो और अच्छा

 

Hope it helps. Don’t forget to share yours thoughts on Twitter @The_HKD