NIFTY on 3rd October

Frankly there is nothing that inspires confidence in Bulls except that both Nifty and BankNifty both reversed their downward journey from junction of their 20 DEMA and DEMA. And for that reason only we might hope that it must have some strength. Otherwise its all bad news for tomorrow. DJIA is currently 570 points down, second big drop in a row if it remains near these levels. On Monday, FIIs made Net Sale of 1298 Crs & DIIs were Net purchasers by 1503 Crs. Option chain data on PUT side doesn't show any Put writing, only Put unwinding on higher strikes. Strikes of 11400 & 11300 show total OI of 10.77 and 11.38 lakhs respctively which is decent. ON CALL side, highest total OI and Call writing is at 11600 but even 11500 & 11600 have impressive build-up of total OI and Call writing. Even 11400 has total OI of 12.82 lakhs and Call writing of 6.22 lakhs. So resistances abound! On chart, There is a strong resistance as marked and hence Shorting can be done there. Again, one word of caution- do not short if price arrives there in later half by around 2 pm or so, since tomorrow we have expiry.
ALL the best. Happy trading.