Data Trends

NIFTY – For 24th August 2021

Important references from Marketprofile to track.

16176-16182F – Support

16040F – Support

16410F – Singles area buying support from 13/8

16482F – PBL from 17/8 where shakeout happened.

16615F – VWAP of 18/8

16686F – Failed auction from 18/8

16386F – Pull Back Low support from 20/8

Note: When market tests these levels and show the expected behaviour i.e. holding a support or not crossing a resistance that combined with a datapoint becomes a valid trigger for a trade.

Important references from Open Interest data to track

16654-668F PE buying from 18/8

16473-498F PE writing from 13/8

16285-320F – PE writers from 12/8

16524F – PE writers zone higher extreme which needs to be held by bulls for further upsides.

Note : These references are from the open interest data and data across the strikes from current weekly expiry is considered for these references.

Call and Put Activity of 23rd August 2021

Open of today was not as expected and NF gapped up only to retrace the full move towards the previous close levels what we refer to as gap filling. There were PE writers who came in after the opening gap up and they failed very badly with the kind of move NF showed at the opening.

Later NF has witnessed good PE writing after it tested the Pullback low of 16390F, From support of PE writing it managed to hold on and inch higher upto 16530 levels later in the day retracing the major part of the down move.

However the retracement didn’t end on a strong note as we closed below 16500F.

Overall data wise we have so many PE writers and also PE unwindings were seen which indicates that if price doesn’t show a follow-through on the upside we can expect one more round of selling to come in. So watchout for tomorrow’s open for this action.

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