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Daily Market Analysis 06 Feb 2023 Monday

Market Structure : Bullish / Buy on Dips

Based on last 2 days price action, Nifty and Bank Nifty both are Bullish. Remember Nifty is in Short Term Down Trend from almost December 2022, any closing above trend line is considered as Short term trend change from Bearish to Bullish. See Hourly Chart below.

Nifty Analysis :

1. Nifty closed higher in previous trading session.
2. Based on last 2 days price action, Nifty is in Buy on Dips mode.
3. There is a support formed in Nifty around 17750 level
4. And there is a strong resistance at 17950 level, which is previous selling zone.
   • If Nifty opens above support level of 17750, any pull back to this level should be considered as buying opportunity.
   • If Nifty opens below the support level of 17750, and pull back to this level should be considered as selling opportunity.
5. For entire Week also, I’ve marked support and resistance levels. See Hourly Chart below.
   • Resistance around 18050 level. If this level breaks, then the short term trend will change.
   • Support for this week is around 17700 level.

Nifty Weekly Options Data :

1. After last week’s action. This Week’s option chain stabilised
2. Highest OI on call side is at 18000
3. Highest OI on Put side is at 17600, after that 17700 and 17500 puts.
4. Option Sellers are holding short straddles at 17800 level in small quantity.
5. Put Call Ratio is at 1.11, which indicated slightly bullish bias.
6. Nifty ATM Straddle premium is at 230 points.

Bank Nifty Analysis :

1. Bank Nifty is also closed higher.
2. Based on last 2 days price action, Bank Nifty is also indicating a Bullish bias.
3. There is support around 41200, any pull back towards this level should be treated as buying opportunity. If Bank Nifty opens above this level.
4. There is a strong resistance at 42000, which is previous selling zone.
5. For entire Week also, I’ve marked support and resistance levels. See Hourly Chart below.
   • Resistance for this week around 42000 level
   • Support for this week is around 41000
6. If the upper trend line breaks, there is no need to be in bearish mode. See Hourly Chart.

Bank Nifty Weekly Options Data :

1. Option sellers active around 41000 to 42000 level, which also the Weekly range suggested based on Price Action.
2. Option Sellers are writing puts at 41500 and 41000 and below.
3. Option Sellers are writing calls at 41500 and 42000 and above.
4. Put Call Ratio is at 1.1, which is slightly bullish bias.
5. Bank Nifty ATM Straddle premium is around 780 points.

Final Thoughts :

1. Near Term trend (for few days) in Nifty and Bank Nifty is Bullish, until closes lower again on daily timeframe.
2. If Nifty and Bank Nifty closes above the trend lines, then the short term trend will change to up trend.
3. I’ve specified the Buying zones and Selling Zones for Intraday in Nifty and Bank Nifty.
4. Also specified support and resistance levels in Nifty and Bank Nifty for this week.
5. Options Data also suggests slightly Bullish bias in Nifty and Bank Nifty.
6. This is Buy on Dips Market for very Short Term.

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.