Nifty forms double top, FII FnO Analysis

• FII’s bought  1330 contract of Index Future worth 52cores, 11.4 K Long contract were added  and 10 K short contracts were added by FII’s. Net Open Interest increased  by 21.4  K contract.FII’s  are again adding long and shorts in Index future in July series.

• Nifty has been rising from past 7 trading session hit a fresh high yesterday session. Nifty has formed a double top yesterday which is a bearish pattern if the High is not broken for next 2 weeks and also need a follow up selling to confirm the pattern, We saw the Impact of Double top in NOW 2010 when Nifty made high of 6337 which was equal to High formed in Jan 2008 only to correct 10%. Also concern is Mid and small cap Index are not participating in rally, Advance/Decline is also not favorable for the rise. So caution is advised near all time high and trail your long position with Strict SL. If indeed we have made a short term top than we can see the market falling as per below Elliot wave count.

• Nifty Future July Open Interest Volume is at 1.68  cores with addition of 4.2 lakh suggesting long addition in Index.
  

• Total Future & Option trading volume was   at 2.38  lakh core with total contract traded at 2.4 lakh. PCR @1.07. This shows overconfidence in BUlls.

• 8000 CE  OI at 80.8 lakh  suggesting wall of resistance , 7900 CE saw 5.4 lakh addition suggesting Bears are building wall of resistance @ 7900 ,FII’s bought 19.7 K CE longs and 8.6  K  CE were shorted by them.
  

• 7700 PE saw a huge addition of 9  lakh in OI suggesting overconfidence in bulls to hold 7700 , 7800 PE also added 12.8 lakhs .FII’s bought 5.9 K PE longs and  15.7 K  PE were shorted by them.

• FIIs bought 652  cores in Equity and DII sold 292 cores in cash segment.INR closed at 60.02.

• Nifty Futures Trend Deciding level is 7783 (For Intraday Traders). NF Trend Changer Level (Positional Traders) 7648  and BNF Trend Changer Level (Positional Traders) 15250  .How to trade Nifty Futures and Bank Nifty Futures as per Trend Changer Level . 
  

 

Buy above 7809 Tgt 7819,7842 and 7875 (Nifty Spot Levels)

Sell below 7785 Tgt 7762, 7729 and 7706 (Nifty Spot Levels)

 

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