Nifty forms triple top,FII data analysis

FIIs sold 689 contracts of Index Future (bought 6161 long contract and 6580 shorts were entered ) worth 25 cores with net Open Interest increasing by 13011 contracts.So FII’s have slowly started entering shorts in Index Futures.IN our last 2 days Option analysis we have clearly mentioned FII’s are using rise to exit the market and today we saw the trailer on downside.

Nifty today closed at 6178 and Nifty has formed triple top pattern and declined after 2 DOJI candlestick signalling bears are slowly coming out of hibernation. Nifty has broken the channel on downside in intraday but closed above it on closing basis. Tomorrow price action will give more clarity.Again I would reiterate market moves in direction which give pain to maximum market participants in short time frame, Media is abuzz with new Life high on Diwali, Do not blindly buy this argument for traders who follow news. For traders who follow system nothing to worry 🙂

Nifty Future Oct Open Interest Volume is at 1.75 cores with liquidation of 7 lakhs in Open Interest,with fall in cost of carry, long liquidation and short addition in market.

Total Future & Option trading volume at 1.90 lakh with total contract traded at 3.5 lakh.PCR (Put to Call Ratio) at 1.12.VIX moved above 20, market participants getting complacent.

6300 Nifty CE is having highest OI at 59.2 lakhs with addition of 10.2 lakhs in OI will be short term resistance. 6200 CE added 5.8 lakh, with net OI at 42 lakh suggesting 6200 will be resistance, NO major addition in 6100 suggests we can dip below 6100 again tomorrow. FII’s sold 11.6 K in Call option and 41.3 K CE were shorted ,so FII’s are going with bearish view on market in short term. 5900-6300 CE added 13.6 Lakh in OI.

6000 PE added 5.6 lakh suggesting strong support at 6000, 6100 PE liquidated 4.9 lakh with net OI at 55.5 lakh so Bulls have liquidated there positions and 6100 can break in next 2 days. FII’s bought huge 85.6 K in Put option and just 218 contracts were shorted. Such huge addition in PE by FII’s just be look with caution, and strict Stop loss on Long position. 5900-6300 PE liquidated 1.3 lakh in OI.

FIIs bought 645 cores in Equity ,and DII sold 546 cores in cash segment.INR closed at 61.59.

Nifty Futures Trend Deciding level is 6173 (For Intraday Traders). NF Trend Changer Level (Positional Traders) 6029 and BNF Trend Changer Level (Positional Traders) 10355 .How to trade Nifty Futures and Bank Nifty Futures as per Trend Changer Level .