Nifty swing view (update 2)

As the NF and the BankNifty move to the lower end of the price band for the series, the delta picture is not convincing us that there are new sellers waiting to take the index lower.

 

See the gradual slope higher in NF and BNF Delta as price has moved lower over the past few sessions.

 

Nf Cumu 1303192223 0 Nifty Swing View (Update 2)

 

Bn Cumu 1303192229 Nifty Swing View (Update 2)

 

The chart clearly tells me that there is a big divergence buiding between price and delta again just like we saw at higher prices of 5972.

 

Refer previous posts done here.

 

Since this cumulative delta does not work as fast as the intra day delta we track in the trading room, I would wait for RM's charts to signal the turn around in the next 1-3 sessions.

 

There just maybe a big rally to close out this month and this series.

 

If you are holding some OTM calls and they are junk now, my advice would be to not chuck them yet.