Observed some interesting things in quantitative data of #Nifty Nifty today, sharing whatever little I could understand.
Please follow due diligence before taking any action on it, do refer to other indicators that you normally do.
#NIFTYFUTURE #nifty50 #banknifty
Please follow due diligence before taking any action on it, do refer to other indicators that you normally do.
#NIFTYFUTURE #nifty50 #banknifty
This OI chart shows #Nifty open interest for past six months, as you can see today’s OI is highest across entire period.
Charts made using @Definedge
Charts made using @Definedge
The above charts displays today’s change in COI, which is 11.17 % higher, price change of nifty future 7.87% and Future price of 9101.8, i.e. at a discount of Rs. 97.
Charts made using @Definedge
Charts made using @Definedge
Such a huge OI buildup in a market that has already corrected by over 25% in past 2-3 weeks, generally result in reversal of trend, if not immediately, that within 2-3 days.
VIX is at multi year high, but is looking too high and some divergence can be seen on RSI hourly charts.
Such high level of Vix too, suggests it will correct soon and will let the Nifty initiate an uptrend.
Such high level of Vix too, suggests it will correct soon and will let the Nifty initiate an uptrend.
Option chain data for next week or month end suggests a reversal is possible as there are a few puts on OI. IV is at historic high levels, experienced traders do try to trade volatility or vega under such circumstances.
I am repeating the markets may take a big dip tomorrow again, generally quantitative data is to be studied for long to medium to take a are positional trade.
Looking at Dow and SGF Nifty, even a not so significant looks difficult. But we have seen markets reversing on most unexpected time, many times.
