Nifty Trading Strategy for 07 May

• FII’s sold 92.2 K contract of Index Future worth 1924 cores,62 K Long contract were squared off  by  FII’s and 30 K  short contracts  were added by FII’s. Net Open Interest decreased  by 31.8 K contract so today’s fall was used by FII’s to square off longs in Index Future and add fresh shorts.Sensex Crashes 700 Points:Reason for sharp fall

•  This is what we discussed today  Nifty after yesterday rise did not show a follow up move, consolidated in range and formed a long legged DOJI, Gunner shows we are entering a new quadrant tomorrow  so impulsive move can be expected in next 2 trading session. Pyrapoint analysis also shown in below chart suggests as we are entering new quadrant so expect impulsive move.   Today we saw nifty reacting very fast in morning trade and broke the last swing low of 8145 and closed below 8100. Now as per Andrew Pitchfork we have important support zone in range of 8030-8009 if held we can see bounceback and broken we can going towards 7921/7900 odd levels.

 

• Nifty May Future Open Interest Volume is at 1.64 core with liquidation of 3.3 lakhs with  cost of carry going negative  suggesting  long position got closed.

• Total Future & Option trading volume was   at 2.94 core with total contract traded at 8.7 lakh. PCR @0.89 still has not got in oversold zone.

• 8500  CE  OI at 43.5 lakh , wall of resistance @ 8500 .8200/8600 CE saw addition of 48.7  lakhs ,so  bears  added 81 lakh in 3 trading session suggesting market is under firm bear grip. FII bought 22.8 K  CE longs and 61.4 K CE  were shorted by them.Retailers have bought 2 lakh CE contracts suggesting bottom is still not in place.
  

• 8000 PE OI@ 42.5 lakhs so strong base @ 8000.  8200/8400 PE liquidated 7.6  lakh so bulls are down and out for time being.  FII bought 36.1 K PE longs and 45.2 K PE  were shorted  by them.
  

• FII’s sold 1699  cores  in Equity and DII’s bought 1454 cores in cash segment.INR closed at 63.54.
  

• Nifty Futures Trend Deciding level is 8187 (For Intraday Traders). NF Trend Changer Level (Positional Traders) 8275  and BNF Trend Deciding Level 18082  (For Intraday Traders) BNF Trend Changer Level (Positional Traders) 18419 How to trade Nifty Futures and Bank Nifty Futures as per Trend Changer Level .   BN TC levels gave 600 points and NF TC level gave 200 points in single session

 

Buy above 8106 Tgt 8123,8147  and 8170 (Nifty Spot Levels)

Sell below 8080 Tgt 8050,8030 and 8000 (Nifty Spot Levels)

 

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