Trade setup for Nifty and Bank Nifty Futures and options for 20th May 2020 based on data of 19th May 2020.

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View as on 2:12 PM

FII/ DII Cash Data : After 7th May BUY of HUL, FIIs are not convinced in any significant buying. Are DIIs accumulating ? If we see DII data then from 2nd March ( Nifty 11200) to 30th March (Nifty low of 7511 on 23rd March) they hv bought 55 k Crores. In April+May DIIs are net buyers of 1946 Cr including HUL buy on 7th May while FIIs are net sellers of 76k Cr ( excluding 17k Cr of HUL). Yesterday, FIIs sold 1328 Cr and DIIs bought 1660 Cr. Thus, April+May data suggest both FII and DII are non-committal on either nifty Falling more or Nifty recovering big time from here. They are waiting for a clear direction of either side to take a significant BUY/SELL.

FII Derivatives Data : Short 75 k Index Call ,12 k Index Short Put with 720.05 Cr inflow: no outstanding Stock Options positions with inflow of 460 Cr; Index futures buy of 2331.69 Cr. Thus FIIs are playing the consolidation of Equity Markets through Derivatives . As of 19th May data. LONG through Futures and Put Option but hedged through Call Option.

India VIX & Advance/ Decline : Reading at 39.45 which shows “fear” increasing , we will look for settlement of reading below all time average of 20 to look for resumption of Capex Activities by companies. Advance/ Decline Ratio of 36:14 for Nifty showed relatively less weakness.

Weekly Nifty Option Strike Analysis for 21st May Expiry : PCR at 9000 = moved up-to 0.39 from yesterday’s 0.3 ; PCR at 9100 has reduced to 0.15 from 0.22; PCR at 9200 has reduced to 0.11 from yesterday’s 0.14 ; PCR at 8800 has moved up-to 3.38 from 2.41 ; PCR at 8900 has moved up to 1.15 from yesterday’s 0.81. PCR at 8850 = 4.78. Bears trying to strengthen grip at 9100/9200. Bulls have got stronghold at 8850/8800.

Any Pull back towards 9100/9200 will be a SELL opportunity and any SELL-OFF towards 8500/8000 will be a BUY opportunity till some very strong “news” is out and discounted in prices.

Final View on Nifty for today 20th May 2020 (19th May close : 8879): “SELL on RISE” at preferably 9050-9080. Resistance 4 : 30 points range of 9050-9080. Resistance 3: 30 points range of 9015-9045 Resistance 2 : 24 point range of 8944-8968. Resistance 1 : 15 points range of at 8880-8895. Support 1 : 10 points range of 8820-8830 ; Support 2: 10 points range of 8740-8760. SGX Nifty indicates a tepid up-move. If nifty breaches any resistance levels on upside wil be a SELL opportunity with upper resistance as STOP LOSS and lower Support as TARGET. 9050-9080 is very strong resistance on upside and 8820-8830 is strong support on downside.