Nifty made top @7700, Elliot wave analysis

• FII’s bought 1.9 K contract of Index Futures worth 77 cores (4.2 K longs were added and 2.2 K shorts were added in Index Future) with net OI increasing by 6.4 K contracts.

• Nifty made a new life high @7700 which was near to our Elliot wave target of 7720 as discussed in last few analysis and turned back.  As per Elliot wave we can go till 7700-7720 but closing above 7700 looks little difficult and pullback can come from that range. Any close below 7570 only will give short term reversal. Also the Bulls power indicator on daily chart has started giving negative divergences so longs need to take extra precaution.

• Nifty Future May Open Interest Volume is at 1.60 cores with liquidation of of 0.07 lakhs in Open Interest, suggesting no panic in bull camp till now and traders are holding on to their positions.

• Total Future & Option trading volume at 2.25 lakh core with total contract traded at 3  lakh.PCR @0.94

• 7800 Nifty CE is having highest OI at 50 lakhs  and 7700 CE having second highest OI  suggesting we have seen a short term top. FII’s bought 8.9 K CE longs and 8.2 K CE were shorted by them.

• 7500 PE OI at 50 lakh remains a strong support from start of series, 7300 PE added 2.2 lakhs suggesting smart buying of PE happening at lower levels.FII’s bought 12.7K PE longs and 17.3 K PE were shorted by them.

• FIIs sold 313 cores in Equity and DII bought 407 cores in cash segment.INR closed above 59.27.
  

• Nifty Futures Trend Deciding level is 7656 (For Intraday Traders). NF Trend Changer Level (Positional Traders) 7463 and BNF Trend Changer Level (Positional Traders) 15301 .How to trade Nifty Futures and Bank Nifty Futures as per Trend Changer Level .
  

Buy above 7640 Tgt 7661,7688 and 7720(Nifty Spot Levels)

Sell below 7601 Tgt 7577, 7528 and 7500 (Nifty Spot Levels)

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