How to trade Nifty Future for 21 Nov 2012

By | November 20, 2012 7:40 pm

1. FIIs  bought 10582 Contracts of Index Future (NSE Nifty Futures and Bank Nifty Futures combined),worth 275.90 cores with net Open Interest decreasing by 9094 contracts.

2. As Nifty Future was down by 5 points with Open Interest in Index Futures decreasing by 9904, so FIIs again booked profits in shorts created  in Nifty and Bank Nifty Futures. Nifty Futures made a peculiar low today of 5555.55 which is termed as a magic number by many Technical Analyst.

3. NS closed at 5572 after making a high of 5614 and low of 5548. Nifty as typically formed a double bottom formation which is having bullish implication if it does not get violated for next 3 days. As discussed in Weekly analysis 5527 holds the key for the week and traders should use this as SL for longs held.

4. Resistance for Nifty has come up to 5581 and 5614 which needs to be watched closely ,Support now exists at 5549 and 5527.Trend is Sell on Rise  till 5620 is not broken on closing basis.

5. Nifty  Future November  Open Interest Volume is at 1.40 cores with liquidation of  6.6  lakh in Open Intrest,shorts booked profits. Cost of Carry of NF decreased to 8.62.

6. Total Future & Option trading  volume was  at 1.15 lakh  Cores  with total contract traded at  1.73 lakh,  PCR (Put to Call Ratio) at 0.98 and VIX  at  16.34.Do note Futures volumes are again high in today’s which again suggests short covering and buying by smart money. This theory holds valid till 5549 is not broken.

7.  5800 Call Option  is having  highest Open Interest of 83 Lakhs with liquidation of 8.85 lakhs in Open Interest  ,5700 Call Option also liquidated 4.1 lakhs  total OI at 82 lakhs ,5600 Call Option again added 2 lakhs in OI so 5600 becomes the immediate resistance for Nifty. 5300-6000 Call Options liquidated 17 lakhs in OI.

8. 5400 Put Option is having  Open Interest of 75 lakhs so now 5400 is having highest OI . 5500 PE added 3.2 lakhs in OI so 5500 is emerging as  base for Nifty.5300-6000 Put Options liquidated 0.014 lakhs in OI.

9. FII  buying in Equity in tune of  143.38 cores and DII  sold 11 cores in cash segment.Indian Rupee ,INR closed at  55.12 Live INR rate  @ http://inrliverate.blogspot.in/).

10. Nifty Futures Trend Deciding level is 5592(For Intraday Traders), Trend Changer at 5691 NF(For Positional Traders). (Above this Level Bulls will rule Nifty/Below this levels Bears have upper hand).  Bank Nifty Future Trend Changer Level 11508.

Buy above 5581 Tgt 5593,5608,5619

Sell below 5549 Tgt 5527,5517 and 5500(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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