S&P CNX Nifty Trading Strategy after Banking Bill passes in Lok Sabha

By | December 18, 2012 7:42 pm

FII

 

1. FIIs  sold 498 Contracts of Index Future (NSE Nifty Futures and Bank Nifty Futures combined),worth 14.31 cores with net Open Interest increasing by 18570 contracts.

2. As CNX Nifty Future was up by 40 points with Open Interest in Index Futures increasing by 18570, so FIIs have created longs  in  Nifty and Bank Nifty Futures.Do note FII did more of day trading today, I have cautioned readers not to trade today see before RBI news nifty fell 40 points in matter of secs and than rose another 50 points again matter of seconds. Huge orders are placed with such volatility Retail traders are bound to get whipsawed.

3. NS closed at 5897 after making high of 5906 and low of 5823,RBI’s mid quarter policy review meet failed  to set the trend of Niftyas Nifty is still  trading range 5839-5963.  Double top and Double bottom formation stands invalid after todays move.  Lok Sabha passes Banking Bill, clears way for new banking licenses trades do not jump to Buy Rel Cap IDFC IFCI as they can open higher but can quickly give away all the gains as all these stocks have seen the run up.

4. Resistance for Nifty has come up to 5906 and 5927 which needs to be watched closely ,Support now exists at 5839 and 5825.Trend is Buy on Dips till 5825 is not broken on closing basis.Yesterday we discussed NR7 day and today it showed effect with NF making a swing of 112 points.

5. Nifty  Future December  Open Interest Volume is at 2.16 cores with liquidation  of  3.3  lakh in Open Interest, Cost of Carry of NF increased  to 23.38.Longs addition seen in NF .

 

 

 

6. Total Future & Option trading  volume was  at 1.92  lakh  Cores  with total contract traded 2.8 lakh,  PCR (Put to Call Ratio) at 0.83 and VIX  at  14.44.Cash market volume also jumped 30% today. 

7.  6000 Call Option  is having highest Open Interest of 1.17 Cores  with liquidation of 5.5 lakhs in Open Interest, 5900 Call also saw liquidation  3.0 lakhs in OI,6100 Call Option added 6.8 lakhs in OI with premium at Rs 5 so shorts got covered in 6100 CE . 5500-6100 Call Options liquidated 6.8 lakhs in OI.

8. 5800 Put Option is having  Open Interest of 98 lakhs with addition of 5.7 lakhs in OI so firm base is set up at 5800 and 5900 Put Option added 7.6 lakhs with OI at 66 Lakhs so  Bulls again added shorts in 5900 Call as nifty was unable to break 5825 .5500-6100 Put Options added 6.37 lakhs in OI. Options table have totally changed today and is now tilting on bulls side.

9. FIIs  buying in Equity in tune of  922.37 cores and DII  sold 491 cores in cash segment,FII has sold 479 cores of Stock futures .INR closed  at  54.96 Live INR rate  @ http://inrliverate.blogspot.in/).

10. Nifty Futures Trend Deciding level is 5924(For Intraday Traders), Trend Changer at 5920NF(For Positional Traders). (Above this Level Bulls will rule Nifty/Below this levels Bears have upper hand).  Bank Nifty Future Trend Changer Level 12375.

Buy above 5907 Tgt 5925,5950,5965

Sell below 5874 Tgt 5845,5825 and 5793(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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