All categories

Mentorship

Mentorship

Panic Attack 2.0

25 Jan 2021 ‚óŹ 07:30 AM

Remember the char below, now one week later, the market has fallen to 14260 v/s 14222 the first time, and Friday's data now shows that we have 39029 crore more Call options open then Put options, even larger than what I reported the last time. So this second record makes it even more oversold. Option writers are the most bearish taking wild bets selling Calls ahead of both expiration and the budget. I think it means the bottom is in for now. The question is only about how much upside will follow. Small bounce or rally to new highs.

Here is another angle. The last 3 occasions were followed by a 10% move by the end of 30 days in Nifty.

  Calls Open Over Puts Nifty Close One month high Upside
24-Sep-20 32237 10805 12025 11%
15-Oct-20 44512 11680 12828 10%
21-Dec-20 31252 13328 14753 11%
25-Jan-21 39029 14327   +1400 points by 25 FEB ?

comments (0)

all category:

Latest Articles