Nifty Ends Bullish, Despite FII & Pro Selling, 50% Returns In Call Options


Nifty, traded with a bullish bias and bounced back strongly from its lower Bollinger band (10618 approx). The index went on to make a high of 10730 in the futures market even as yesterday’s open interest data revealed that FII’s and Pro were net sellers in the market. In today’s trade, the Nifty future climbed 100 points from its intraday low of 10630 and went on to make a high of 10730. The 10750, 10800, and the 10900 call options generated 50% returns in today's trading session. Options traders can spot such opportunities by using Black Scholes formula. However, yesterday’s open interest data clearly indicated that the FII’s and Pro were on the sell side. This lagging indicator underlines the fact that smart trading is about creating a niche and not about following the OI data which is 24 hours delayed.   

Stocks Under The Scanner
In the pharma sector, Cipla shares rose 4.21%, while Bajaj Finserv shares in the NBFC sector rose2.06 %. Shares of Vedanta in the metal sector were down 3.69%. 



The Outlook for 4th July 2018
Daily Chart Levels
In today’s trading, Nifty share price took the support of it's lower Bollinger band (10618 approx). The index will face resistance around its 10 DMA (10719 approx). If the index breaks and trades above its 20 DMA( 10752 approx) it will find its next resistance area around its upper Bollinger band (10885 approx). However if Nifty breaks and trades below 10600, it will find its next support at its 100 DMA ( 10530 approx).



Hourly Chart Levels
In the hourly charts, the Nifty share price has closed around its 5 HMA (10700 approx). The index will find its support around its 20 HMA (10675 approx). If Nifty breaks and trades below its 34 HMA( 10658 approx) it will find its next support around its lower Bollinger band ( 10617 approx).





The Outlook For 4th July 2018
Bank Nifty Daily Chart Levels
In the daily chart, Bank Nifty share price took the support of its 50 DMA (26169 approx). The index will face its first round of resistance around 5 DMA (26323 approx). If the index breaks and trades above its 34 DMA( 26348 approx) it will find its next resistance area around it is 5 DEMA high (26434 approx). However, if Bank Nifty breaks and trades below 26100, it will find its next support at its 200 DMA ( 25470 approx).


 
Bank Nifty Hourly Chart Levels
In the hourly charts, Bank Nifty share price has closed near its 20 HMA (26278 approx). The index will find its next resistance around its 34 HMA (26305 approx). If Bank Nifty breaks and trades below its 15 HMA( 26244 approx) it will find its next support around its lower Bollinger band ( 26118 approx).



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India’s benchmark Nifty, traded with a bullish bias and bounced back strongly from its lower Bollinger band (10618 approx). The index went on to make a high of 10730 in the futures market even as yesterday’s open interest data revealed that FII’s and Pro were net sellers in the market. In today’s trade, the Nifty future climbed 100 points from its intraday low of 10630 and went on to make a high of 10730. The 10750, 10800, and the 10900 call options generated 50% returns in today's trading session. Options traders can spot such opportunities by using Black Scholes formula. However, yesterday’s open interest data clearly indicated that the FII’s and Pro were on the sell side. This lagging indicator underlines the fact that smart trading is about creating a niche and not about following the OI data which is 24 hours delayed.   

Stocks Under The Scanner
In the pharma sector, Cipla shares rose 4.21%, while Bajaj Finserv shares in the NBFC sector rose2.06 %. Shares of Vedanta in the metal sector were down 3.69%. 



The Outlook for 4th July 2018
Daily Chart Levels
In today’s trading, Nifty share price took the support of it's lower Bollinger band (10618 approx). The index will face resistance around its 10 DMA (10719 approx). If the index breaks and trades above its 20 DMA( 10752 approx) it will find its next resistance area around its upper Bollinger band (10885 approx). However if Nifty breaks and trades below 10600, it will find its next support at its 100 DMA ( 10530 approx).



Hourly Chart Levels
In the hourly charts, the Nifty share price has closed around its 5 HMA (10700 approx). The index will find its support around its 20 HMA (10675 approx). If Nifty breaks and trades below its 34 HMA( 10658 approx) it will find its next support around its lower Bollinger band ( 10617 approx).





The Outlook For 4th July 2018
Bank Nifty Daily Chart Levels
In the daily chart, Bank Nifty share price took the support of its 50 DMA (26169 approx). The index will face its first round of resistance around 5 DMA (26323 approx). If the index breaks and trades above its 34 DMA( 26348 approx) it will find its next resistance area around it is 5 DEMA high (26434 approx). However, if Bank Nifty breaks and trades below 26100, it will find its next support at its 200 DMA ( 25470 approx).


 
Bank Nifty Hourly Chart Levels
In the hourly charts, Bank Nifty share price has closed near its 20 HMA (26278 approx). The index will find its next resistance around its 34 HMA (26305 approx). If Bank Nifty breaks and trades below its 15 HMA( 26244 approx) it will find its next support around its lower Bollinger band ( 26118 approx).



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