Nifty corrects from Elliot wave target, FII Data analysis

FII’s sold 14989 contract of Index Future worth 574 cores, 5348 Long contract were squared off and 9641 short contracts were added.Net Long Contract for FII’s are just 21K for the current series which is lowest in 2014, so FII’s are majorly going short in market.

As i was discussing in past few days, EW top of 7700 was short term top, Also Hanging Man confirmation was done yesterday and today market showed a ferocious fall the velocity of fall surprised most of market participants. As per Elliot wave we can go till 7700-7720 but closing above 7700 looks little difficult and pullback can come from that range. 7474 and 7408 are 2 logical target of this fall as shown in below chart. Also the Bulls power indicator on daily chart has started giving negative divergences so longs need to take extra precaution.

As 7577 is 34 H EMA and last time nifty closed below it, Nifty made a 100 points fall so same can be repeated this time.

Nifty Future May Open Interest Volume is at 1.51 cores with liquidation of of 15 lakhs in Open Interest, showed Bulls were caught unaware and over leverage positions were squared off in panic.

Total Future & Option trading volume at 2.29 lakh core with total contract traded at 3.3 lakh.PCR @1

7800 Nifty CE is having highest OI at 56 lakhs and 7700 CE having second highest OI suggesting we have seen a short term top. 11.7 lakh addition in 7600 suggests than it will be diffcult to cross 7600 odd levels for next few days. FII’s sold 4.2 K CE longs and 9.3 K CE were shorted by them.

7500 PE OI at 51 lakh remains a strong support from start of series, 7300 PE added 0.7 lakhs suggesting smart buying of PE happening .FII’s bought 33.2 K PE longs and 5.4 K shorted PE were covered by them.

FIIs bought 1099 cores in Equity and DII bought 358 cores in cash segment.INR closed above 59.76.

Nifty Futures Trend Deciding level is 7602 (For Intraday Traders). NF Trend Changer Level (Positional Traders) 7490 and BNF Trend Changer Level (Positional Traders) 15321 .How to trade Nifty Futures and Bank Nifty Futures as per Trend Changer Level .