How to trade Nifty Future for 22 Nov 2012

By | November 21, 2012 7:30 pm

1. FIIs  sold 2174 Contracts of Index Future (NSE Nifty Futures and Bank Nifty Futures combined),worth 97 cores with net Open Interest increasing by 13258 contracts.

2. As Nse Nifty Future was up by 38 points with Open Interest in Index Futures increasing by 13258, so FIIs after long time initiated buying  in Nifty and Bank Nifty Futures. Nifty Futures made a peculiar low yesterday of 5555.55 which is termed as a magic number by many Technical Analyst and today it showed effect with NF trading well above 5620.

3. NS closed at 5615 after making a high of 5620 and low of 5561.As discussed yesterday Nifty has typically formed a double bottom formation which is having bullish implication if it does not get violated for next 3 days. Today was the 1 day we protected the 5548 levels, and market closed well above 5600. We have Winter session of Indian Parliament. Will it function and reforms will be passed needs to be seen from market perspective.Nifty managed to respect the support level of 5550 and inched higher in today’s trade. After today’s activity Nifty has closed above the support offered by an advancing channel which is in place since past five months. If the bullish trend has to continue it is very important that Nifty needs to first surpass the resistance of 5650 and above that 5700 while not breaching the level of 5550 in the near term.

4. Resistance for Nifty has come up to 5629 and 5642 which needs to be watched closely ,Support now exists at 5584 and 5607.Trend is Buy on Dips  till 5548 is not broken on closing basis.

5. Nifty  Future November  Open Interest Volume is at 1.39 cores with liquidation of  1.6  lakh in Open Interest,shorts got liquidated profits. Cost of Carry of NF decreased to 4.26.

6. Total Future & Option trading  volume was  at 1.30 lakh  Cores  with total contract traded at  1.86 lakh,  PCR (Put to Call Ratio) at 1 and VIX  at  15.68. As discussed in last few sessions  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 86 Lakhs with addition of 2.25 lakhs in Open Interest  ,5700 Call Option  liquidated 1.2 lakhs  total OI at 81 lakhs ,5600 Call Option liquidated 5 lakhs in OI as Nifty closed well above 5600 and should now act as support. 5300-6000 Call Options liquidated 9.3 lakhs in OI.

8. 5500 Put Option is having  Open Interest of 87 lakhs with huge addition of 17 lakhs in OI. 5600 PE added 12 lakhs in OI so Bulls are again trying to capture and make base at 5600 .5300-6000 Put Options added 30 lakhs in OI.Such a huge addition present a very bullish picture.

9. FIIs  buying in Equity in tune of  182.59 cores and DII  sold 133.8 cores in cash segment.Indian Rupee ,INR closed at  55.18 Live INR rate  @ http://inrliverate.blogspot.in/).

10. Nifty Futures Trend Deciding level is 5590(For Intraday Traders), Trend Changer at 5686 NF(For Positional Traders). (Above this Level Bulls will rule Nifty/Below this levels Bears have upper hand).  Bank Nifty Future Trend Changer Level 11503.

Buy above 5620 Tgt 5636,5652,5675

Sell below 5600 Tgt 5584,5561 and 5549(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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