Nifty near trendline support, Ready to Bounceback

• FII’s sold 3949 contract of Index Future worth 162 cores, 1.3 K Long contract were squared off and 2.6 K short contracts  were added by FII’s. Net Open Interest increased  by 2.9 K contract , so FII squared   long and added shorts in Index futures.But the number of shorts contracts added are quiet less suggesting fall was backed by long liquidation.

• Nifty corrected by 100 points after long time, but the way many mid caps and high beta cracked have scared traders, But this is how Bull market works, correction are fast and swift and recovery is also very fast. So has this small pullback changed the structure of market, As shown in below chart, Nifty is near its trendline support and also has corrected just 38.2% retracement of the rise from 7540 odd levels.  So holding 7906/7864 the bullish structure is intact, We have fed policy today and if today managed to close above 8000 we can see nifty making new high in coming week.Big move came as expected and discussed, Hope traders were able to capitalize over it.

 

• Nifty Future Sep Open Interest Volume is at 1.29 cores with liquidation of 5.2  lakh suggesting long liquidation.OI is very low in Nifty future so both bulls and bears are not carrying heavy positions suggesting range bound move can continue.
  

• Total Future & Option trading volume was   at 2.82  lakh core with total contract traded at 2.4 lakh. PCR @0.88.

• 8200  CE  OI at 72.7  lakh  suggesting wall of resistance , 8100 CE  added 8.1 lakh .8000 CE added 21.3 lakh suggesting bears  are confident of 8000 not crossing in near term and any positive event from fed can lead to short covering in 8000 CE and pushing index further on higher levels. FII’s bought 2.9 K CE longs and 3.3 K CE  were shorted  by   them.
  

• 8000 PE OI@ 63.8  lakhs so strong base @ 8000. 7900 PE OI@57.5  so support building up @7900, So fight for 8000 will be seen in coming 2 days . FII’s bought 29.3  K contract  PE longs and 1.6 K PE were by  shorted  by them.

• FII’s sold 828 cores in Equity and DII bought 465 cores in cash segment.INR closed at 61.06.
  

• Nifty Futures Trend Deciding level is 8001 (For Intraday Traders). NF Trend Changer Level (Positional Traders) 8100 and BNF Trend Changer Level (Positional Traders) 16132.How to trade Nifty Futures and Bank Nifty Futures as per Trend Changer Level . 
  

 

Buy above 7968 Tgt 8000,8028 and 8045 (Nifty Spot Levels)

Sell below 7925 Tgt 7906, 7884 and 7864(Nifty Spot Levels)

 

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