I have begun this video by discussing about USDINR price structure. Price is currently below 200 day moving average and 50 day moving average is very close to crossing 200 Day average on the downside. This has implications for Nifty and Bank Nifty as well as a fast depreciating currency puts pressure on stock market. For now, price is in a range of 69 – 72 and if price remains in this range or below this range, it will be positive for both Nifty 50 and Bank Nifty.
I have then discussed about Nifty 50, Bank Nifty and Nifty Next 50 price structure and volume analysis. In Nifty and Bank Nifty chart, volumes are still amiss. While price move has happened, volumes have not picked up on Nifty or in Bank Nifty. In Nifty Next 50, Price still remains below 200 DMA but in recent up move, one has seen volume pick up happening. For Nifty and Bank Nifty, price Is above the 50 DMA and 200 DMA and this is definitely a positive sign.
I have then taken up Nifty Option chain analysis where I have discussed Net open interest analysis for the last 7 days. Clearly, Put open interest has increased that has led Nifty and Bank Nifty higher. On the flip side, I have also mentioned that for further up move to happen in Nifty and in Bank Nifty, open interest reduction has to happen at higher call strike prices. Unless this happens, risk for some consolidation remains high. Option chain analysis is a wonderful way to determine the net bias of the market and I have covered this subject extensively.
I then move to Nifty and Bank Nifty breadth and turnover data. I have pointed out that there has been some improvement in Market turnover and market breadth and this remains a very positive sign with respect to Nifty and Bank Nifty. Both these data points should be tracked very closely from now on to assess strength within the market. Towards the end, I have discussed Nifty chart and Bank Nifty chart key levels for next week.