1. FIIs sold 4770 Contracts of Index Future (NSE Nifty Futures and Bank Nifty Futures combined),worth 134.12 cores with net Open Interest increasing by 560 contracts.
2. As CNX Nifty Future was up by 38 points after 5 days of losing streak with Open Interest in Index Futures increasing by 560, so FIIs have booked shorts in Nifty and Bank Nifty Futures.WPI data was a surprise coming at just 7.24% and it has increased the rate cut hope on 18 Dec. FII did lot of day trading today as FII average is coming at 5623.
3. NS closed at 5878 after making high of 5886 and low of 5839,Again Today Nifty has formed a double bottom which is a bullish formation and if 5839 is not broken for next 3 days. Yesterday i have discussed of 5841 and today low 5839 and a rally after WPI data came. Nifty is showing sign of strength and shorts should be avoided till 5825 is not broken. When Nifty is trading in range 5839-5963 best is to Buy near support and sell at resistance.
Readers if they remember at 5548 also we alerted about double bottom and we are up almost 400 points from 5548. So Double bottom is a strong possibility of reversal.
4. Resistance for Nifty has come up to 5886 and 5900 which needs to be watched closely ,Support now exists at 5839 and 5825.Trend is Buy on Dips till 5825 is not broken on closing basis.
5. Nifty Future December Open Interest Volume is at 2.13 cores with liquidation of 1.36 lakh in Open Interest, Cost of Carry of NF increased to 18.56.Shorts liquidation seen in NF and addition of longs also seen with rise in Cost of Carry.
6. Total Future & Option trading volume was at 1.30 lakh Cores with total contract traded 1.97 lakh, PCR (Put to Call Ratio) at 0.93 and VIX at 14.23.Cash market volume has been on lower end.
7. 6000 Call Option is having highest Open Interest of 1.12 Cores with liquidation of 3.2 lakhs in Open Interest, 5900 Call also saw liquidation 2.0 lakhs in OI,6100 Call Option added 3.2 lakhs in OI with premium increasing to Rs9 so we can assume shorts got covered and longs are added in 6100 CE . 5500-6100 Call Options liquidated 3.86 lakhs in OI. Now liquidation of OI give sign of an upmove.
8. 5800 Put Option is having Open Interest of 91 lakhs with addition of 9.3 lakhs in OI so firm base is set up at 5800 and 5900 Put Option added 4.8 lakhs with OI at 62 Lakhs so even though Nifty closed below 5900 Bulls have still not liquidated shorts in 5900 Call suggesting we can see a good bounce either tommrow .5500-6100 Put Options added 14.3 lakhs in OI. This huge addition by Bulls make there intention clear of bounce to come in Nifty.
9. FIIs buying in Equity in tune of 574.28 cores and DII sold 512.43 cores in cash segment,FII has sold 21 cores of Stock futures and 2998 in 10 trading sessions.INR closed at 54.57 Live INR rate @ http://inrliverate.blogspot.in/).
10. Nifty Futures Trend Deciding level is 5923(For Intraday Traders), Trend Changer at 5925 NF(For Positional Traders). (Above this Level Bulls will rule Nifty/Below this levels Bears have upper hand). Bank Nifty Future Trend Changer Level 12357.
Buy above 5887 Tgt 5900,5925,5950
Sell below 5838 Tgt 5825,5800 and 5787(Nifty Spot Levels)
Disclaimer: These are my personal views and trade taken on these observation should be traded with strict Sl
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I fully agreed with your double bottom formation view
Thanks
@akhil,
Hi, Do you have any counter view. I find the above view/trade quite rewarding, thanks to the team.
Think you are being overly bullish