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Daily Market Analysis 03 Feb 2023 Friday

Market Structure : Bearish

Nifty and Bank Nifty will transition to Bullish Trend, if there is any higher closing tomorrow. Otherwise, it will stay it Bearish trend.

Nifty Analysis :

1. Nifty and Bank Nifty consolidated and closed as inside bar.
2. Nifty made a triangle pattern
   • This pattern indicates move on any side of the breakout.
   • On 31st Jan Nifty formed a Bullish Ascending triangle, which indicates bullishness.
   • But with this pattern, if there is any breakout on either side. Momentum will be on that side.
3. As per my technical analysis, I’m expecting a trending move tomorrow,
   • if there is any gapup above today’s high and gapdown below today’s low.
   • Trending move will be in the direction of the opening.
4. Today there is a buying zone, for any upside momentum this buying zone should be respected.
   • If this zone fails to hold, we may see further fall.

Nifty Weekly Options Data :

1. Next Week Options, Option Sellers are creating short straddles at 17600
2. Highest OI on call side is at 18500 after that 18000
3. There is no significant OI on put side, other than 17600 Put
4. Put Call Ratio is at 0.72, which is bearish.
5. Next Week’s ATM Straddle premium is at 320 points.

Bank Nifty Analysis :

1. Bank Nifty also consolidated and closed as an inside day.
2. Bank Nifty formed a Bullish Ascending Triangle, this indicates bullishness.
   • This pattern formed on 31st Jan, after breakout moved upside
   • Tomorrow this pattern may breakout on the upside.
3. As per my technical analysis, I’m expecting a trending move tomorrow,
   • if there is any gapup above today’s high and gapdown below today’s low.
   • Trending move will be in the direction of the opening.
4. Today there is a buying zone, for any upside momentum this buying zone should be respected.
   • If this zone fails to hold, we may see further fall.

Bank Nifty Weekly Options Data :

1. In Weekly Options, Option Sellers are creating 40500 Short Straddles.
2. 41000 call has the highest OI
3. 40000 put has the highest OI
4. Put Call Ratio is at 0.62, which is bearish sign.

Final Thoughts :

1. Nifty and Bank Nifty both consolidated and closed as inside day.
2. Nifty and Bank Nifty formed triangle pattern
   • Nifty formed Neutral / Plain triangle, there is no bias to this pattern.
   • Bank Nifty formed Bullish Ascending Triangle, this pattern indicates Bullishness.
3. As per my technical analysis, I’m expecting a trending move tomorrow in one direction.
   • If there is any gapup above today’s high, trending move will be on higher side.
   • If there is any gapdown below today’s low, trending move will be on lower side.
4. There is a buying zone, both for Nifty and Bank Nifty.
5. Any dip towards this level should be treated as buying zone, if there is any gapup.
6. If there is any gapdown, any pullback towards this level should be treated as selling zone.

If you are seeing anything else other than what I’m seeing from this data, post your view below in the comments section.

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Disclaimer : I’m not a SEBI registered analyst, these are my views only.