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Daily Market Analysis 23 Jan 2023 Monday

Market Structure :

Short Term trend in Nifty is Bearish. Know more about Nifty Long Term View Jan 2023

Nifty Analysis :

1. Nifty is in the range as discussed in previous week’s discussion, and trading in a range from multiple weeks.
2. Last week Nifty broke the previous week’s high and closed inside the weekly range again.
3. Friday’s Nifty closing is negative
4. I’ve marked a selling zone in Nifty (you can see Nifty 15 minutes chart). If market opens below this level and retests it, then it is a short entry opportunity.
5. If market opens above this level and retests it, then it will act as Long entry opportunity. (You should remember this quote “Support once broken will act as Resistance and Resistance once broken will act as Support” )
6. Nifty is trading below short term down trend’s trendline. If you wanted to see the chart, see the Nifty’s hourly chart from Friday’s Daily Market Analysis

Nifty Monthly Options Data :

1. In Intraday, Option Sellers added more than 88 Lakh OI at 18100 Call, This is the Highest Call OI in positional option chain as well.
2. After that option sellers are maintaining 18200 and 18500 calls in Positional Options Data.
3. Compared to Calls, there is not much OI in puts side.
4. Put Call Ratio is at 0.71, which indicates a bearish sign for this expriy.

Bank Nifty Analysis :

1. Last Week Bank Nifty is also closed in the Previous Week’s range, See Weekly Chart Below.
2. As discussed in Friday’s Daily Market Analysis, Bank Nifty broke the Pole and Flag pattern and closed above it.
3. As Per Friday’s closing, Bank Nifty is not that Bearish

Bank Nifty Monthly Options Data Analysis :

1. In Bank Nifty, Option Sellers are holding 42500 Short Straddles
2. This indicates Option Sellers are expecting the market to close in a range for this expriy.
3. These Options Sellers view will change in just one trading day.
4. After 42500 Short Straddles, Major OI can be seen at 42000 Put and 43000 Call.
5. Put Call Ratio is at 0.9, It indicates slightly bearishness.

Final Thoughts :

1. Nifty and Bank Nifty both are in clear trading range.
2. To see any move, Nifty and Bank Nifty both should break on the upside or on the downside.
3. In Nifty I’ve marked a selling zone (you can see Nifty 15 minutes chart). If market opens below this level and retests it, then it is a short entry opportunity. If market opens above this level and retests it, then it will act as Long entry opportunity.
4. On Friday, after first 35 minutes, I’ve observed option sellers are writing 18100 short straddles. Throughout the day, this short straddle decayed from a premium of 210 to 180. Which is 1% to 1.5% return on capital deployed in one day. Updated it in Telegram Channel (see the pics below)

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.