Nifty gets Rajan effect, Will Fed oblige the bulls

FIIs bought 18028 contracts of Index Future worth 549 cores (26909 Longs contract were added and 8881 shorts contract were added) with net Open Interest increasing by 35790 contracts, so FII’s added longs and short both before the Fed event bias remains on long side though.

RBI governor Raghuram Rajan played Santa for the Indian stock markets today by retaining the repo rate and fueling the much expected bounceback as we have been discussing in our past analysis. This is what we discussed As discussed in Weekly Analysis Nifty can see turn date tomorrow.6230 and 6280 should be intital target of pullback rally.Also looking at Options data we can see a range expansion with 100+ move. Power of follwing the Trading system, Always remmber price shows everything well in advance. All eyes will be on Ben Bernake comment tonight which will decide the further course of world market. Nifty formed a bullish engulfing pattern today backed by volumes tomorrow price action will put more clarity in will be able to move back to 6400 odd levels.

Nifty Future December Open Interest Volume is at 2.2 cores with addition of 1.7 lakhs in Open Interest,with increase in cost of carry signalling short liquidation and long addition.

Total Future & Option trading volume at 1.85 lakh with total contract traded at 2.6 lakh, .PCR (Put to Call Ratio) at 0.83. PCR also added to conviction that bounce back is on cards as discussed in yesterday analysis.

6300 Nifty CE is having highest OI at 67.9 lakhs , still remain resistance. 6200 CE liquidated 5.6 lakh signalling call writers panicked today and rushed to cover there positions.6400 CE added 3.8 lakhs speculative buying looking at Fed event today. 6000-6500 CE liquidated 8.7 Lakh in OI.FII sold 1.1 K longs in CE,15 K calls were shorted.

6100 PE is having highest OI at 56.6 lakhs suggesting strong support at 6100.6200 PE added 13.9 lakh in OI suggesting 6200 PE writers were back with a bang, and wrote aggressively,and will be short term bottom of the market. 6000-6500 PE added 22.2 Lakh in OI.FII’s sold 1.8K in long PE and 13.3 K PE were shorted.

FIIs bought 1199 cores in Equity ,and DII sold 413 cores in cash segment.INR closed at 62.09

Nifty Futures Trend Deciding level is 6227 (For Intraday Traders). NF Trend Changer Level (Positional Traders) 6259 and BNF Trend Changer Level (Positional Traders) 11534.How to trade Nifty Futures and Bank Nifty Futures as per Trend Changer Level .