S&P CNX Nifty and Bank Nifty Trading Strategy for 21 Feb

1. FIIs bought 12240  Contracts of Index Future (NSE Nifty Futures and Bank Nifty Futures combined),worth 366 cores with net Open Interest increasing by 20800 contracts. Are you an average trader?

2. As CNX Nifty Future was up by 10 points with Open Interest in Index Futures increasing by 12800 so FII did short covering today in Nifty Futures but Bank Nifty still remains a shorting candidate.

3. NS closed at 5943 after  making high of 5971 and low of 5937.Nifty continued with formation of  Higher High and Higher Low and today also but unable to sustain at higher levels. Range of 5950-5974 is tricky range and bulls need to cross this range for Nifty to turn bullish. This was what we discussed yesterday and Nifty made high of 5971 after opening gap up of 27 points and turned back :). Nifty has formed NR7 pattern today so tommrow expect some fireworks if 5971 is crossed and sustained on hourly basis,else will be back to sub 5900 levels.

 

 

4. Resistance for Nifty has come up to 5961 and 5974  which needs to be watched closely ,Support now exists at 5917 and 5900.Trend is Buy on Dips till 5880  is not broken on closing basis.

5. Nifty Future Feb Open Interest Volume is at 1.60 cores with addition of  2.1 lakh in Open Interest longs addition in system, Cost of Carry of Nifty Future increased to 16.28  showing shorts liquidation and long addition into the system. Cash market volumes were again higher on down day.

6. Total Future & Option trading volume at 1.02 lakh Cores with total contract traded  at 1.32 lakh , PCR (Put to Call Ratio) at 0.94 and VIX at 15.6 still sustaining at 15.6 which was breakout level.

7. 6100 Nifty CE  is having highest OI at 83 lakh, 6200 CE surprisingly added 9.7 lakhs in OI with premium at Rs 2 which shows speculative activity has started in OTM options with budget day coming near. 6000 Call Option is having second highest Open Interest of 75.4  lakhs with liquidation  of  1.5  lakhs in Open Interest premium at Rs 35  shorts covering continues,  ,Lets see can  Bears hold their forte at  6000 CE tommrow.5700-6300 Call Options added 6.2  lakhs in OI.

8. 5900 Put Option is having highest  Open Interest of  70.1 lakhs with liquidation of 1.2  lakhs in OI  , 6000 PE writers added 3.9 lakhs,5800 PE added 2.2 lakhs and is having second highest OI  at 68.1 lakhs  . 5700 PE  again liquidated 12  lakhs with Option premium at Rs 2.4  ,so this time smart money covering  shorting  in 5700 PE from rs 12 to 2  .5700-6300 Put Options liquidated 9  lakhs in OI. Intresting days ahead with addition in 6200 CE and 5800 PE.

9. FIIs bought in Equity in tune of 434 cores,and DII sold 591 ores in cash segment,INR closed at 54.06.

10. Nifty Futures Trend Deciding level is 5990(For Intraday Traders), Trend Changer at 5962 NF(For Positional Traders). (Above this Level Bulls will rule Nifty/Below this levels Bears have upper hand). Bank Nifty Future Trend Changer Level 12483. Today again Trend Changer Level in Bank Nifty helped in minting almost 60 points intraday only. Nifty Futures are facing lot of resistance in crossing trend changer level.

Buy above 5950 Tgt 5962,5971 and 5984

Sell below 5930 Tgt 5917,5899,5884(Nifty Spot Levels)

Traders who use Pivot and Camarilla can use the following 2 sites for Hourly values and EOD values

 

http://camarillapivotpoints.blogspot.com/
http://niftystockpivot.blogspot.in/

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