How to trade on RBI Policy day, Nifty trading strategy

FII’s bought 425 contract of Index Future worth 66.5 cores ,5.3 K Long contract were added by FII’s and 4.8 K short contracts were added by FII’s. Net Open Interest increased by 10 K contract. Reacting versus Predicting in Trading

This is what we discussed in last analysis Nifty is now entering the crucial resistance zone before the RBI policy on 02 June. AS per Gunner also we are near red arc suggesting testing time ahead. Monday can be a range bound day with volatile moves 8394-8483 before the RBI policy. Nifty reacted from the zone of resistance as shown in below chart, and consolidated today, As per gann time analysis 2 and 3 June one explosive move will be seen so plan your trades accordingly. If today high gets broken Nifty can rally towards 8525/8560/8620 odd levels.Break of 8373 can see is moving towards 8320/8250 odd levels.

Nifty June Future Open Interest Volume is at 1.60 core with addition of 2.4 lakh, with decrease in CoC suggesting shorts have entered in the system.

Total Future & Option trading volume was at 1.26 core with total contract traded at 3 lakh. PCR @0.84

8500 CE OI at 25.9 lakh , wall of resistance @ 8500 .8100/8400 CE liquidated 1.2 lakh ,so minor liquidation by bears. FII bought 12 K CE longs and 16.5 K CE were shorted by them.Retail traders bought 1 lakh CE contracts.

8000 PE OI@ 42.7 lakhs so strong base @ 8000. 8100/8500 PE added 10 lakh so bulls added aggressively today, Holding 30 lakh open position. FII bought 24.1 K PE longs and 39.6 K PE were shorted by them.Retail traders bought 41 K PE contracts.

FII’s bought 113 cores in Equity and DII’s bought 49 cores in cash segment.INR closed at 63.70

Nifty Futures Trend Deciding level is 8449 (For Intraday Traders). NF Trend Changer Level (Positional Traders) 8395 and BNF Trend Deciding Level 18746 (For Intraday Traders) BNF Trend Changer Level (Positional Traders) 18642 How to trade Nifty Futures and Bank Nifty Futures as per Trend Changer Level .

Buy above 8444 Tgt 8460,8495 and 8526 (Nifty Spot Levels)

Sell below 8400 Tgt 8375,8342 and 8320 (Nifty Spot Levels)

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9 thoughts on “How to trade on RBI Policy day, Nifty trading strategy”

Vinod Krishna June 3, 2015 9:04 am

Hi Bramesh,

As Iam a beginner, really happy to see such a wonderful blog. I have some doubt regarding your technical posting above. If you clear my doubt that would be great helpful for me. I have doubt, on your view which you have mentioned above “8500 CE OI at 25.9 lakh , wall of resistance @ 8500 .8100/8400 CE liquidated 1.2 lakh ,so minor liquidation by bears. FII bought 12 K CE longs and 16.5 K CE were shorted by them.Retail traders bought 1 lakh CE contracts”.

My doubts are:
1) How r u telling that “8100/8400 CE liquidated 1.2 lakh ,so minor liquidation by bears”.
2) How are you telling with statistic that FII bought 12 K CE longs and 16.5 K CE were shorted in 8500 CE counter.? Where to find out, is there any website of any formula to calculate.?
2) where to find PCR value? Is there any website?

Please clarify my doubt. Waiting for your precious reply.

Thanks in advance.

Thanks and Regards,
Vinod.

Reply ↓

Bramesh Post authorJune 3, 2015 9:14 am

Hi,

1. Option Chain
2. From my trading system
3. Nseindia

Rgds,
Bramesh

Reply ↓
1. Vinod Krishna June 3, 2015 12:53 pm
  
  Bramesh,
  
  Thanks for your reply. Iam clear with your 1st and 3rd answer and i have gone through it via nseindia websites. But third answer is not clear. Is there is any website to share or any formula to calculate those details.
  
  Thanks & regards,
  Vinod.
  
  Reply ↓
  1. Bramesh Post authorJune 3, 2015 12:54 pm
    
    u need to learn and develop the system.
    
    Reply ↓
    1. Vinod Krishna June 3, 2015 3:37 pm
      
      Bramesh,
      
      I am not talking about the system. I think, u didnt understand my doubt. My doubt is, usually at particular counter ie 8500CE, how will you, how much of them go long and shorter? And also FII and retailer participants.
      
      Thanks.

Jeyaprakash June 2, 2015 4:40 pm

Nifty today unable to break yesterdays high and made all low levels ..8250 is also broken… bramesh ji whats the trend now??? bullish or bearish???

Reply ↓

shyamal June 2, 2015 3:05 pm

brhmesh sir you r fabulous today i also short @8394 your trend change level and booked 50% @8295 and rest as it is with proper sl. superb analysis i did not see even one of advisor like you. very very good level to level trade. i like your 2 words you said we trade with wind means what ever wind is blowing trading on that side. thanks again

Reply ↓

fan June 2, 2015 1:08 pm

Gann playing out..closing day low most prolly.lets hope for the best 😀

Reply ↓

Bramesh Post authorJune 2, 2015 1:33 pm

njoy 🙂

Reply ↓

Vinod Krishna June 3, 2015 9:04 am

Hi Bramesh,

As Iam a beginner, really happy to see such a wonderful blog. I have some doubt regarding your technical posting above. If you clear my doubt that would be great helpful for me. I have doubt, on your view which you have mentioned above “8500 CE OI at 25.9 lakh , wall of resistance @ 8500 .8100/8400 CE liquidated 1.2 lakh ,so minor liquidation by bears. FII bought 12 K CE longs and 16.5 K CE were shorted by them.Retail traders bought 1 lakh CE contracts”.

My doubts are:
1) How r u telling that “8100/8400 CE liquidated 1.2 lakh ,so minor liquidation by bears”.
2) How are you telling with statistic that FII bought 12 K CE longs and 16.5 K CE were shorted in 8500 CE counter.? Where to find out, is there any website of any formula to calculate.?
2) where to find PCR value? Is there any website?

Please clarify my doubt. Waiting for your precious reply.

Thanks in advance.

Thanks and Regards,
Vinod.

Reply ↓
1. Bramesh Post authorJune 3, 2015 9:14 am
  
  Hi,
  
  1. Option Chain
  2. From my trading system
  3. Nseindia
  
  Rgds,
  Bramesh
  
  Reply ↓
  1. Vinod Krishna June 3, 2015 12:53 pm
    
    Bramesh,
    
    Thanks for your reply. Iam clear with your 1st and 3rd answer and i have gone through it via nseindia websites. But third answer is not clear. Is there is any website to share or any formula to calculate those details.
    
    Thanks & regards,
    Vinod.
    
    Reply ↓
    1. Bramesh Post authorJune 3, 2015 12:54 pm
      
      u need to learn and develop the system.
      
      Reply ↓
      1. Vinod Krishna June 3, 2015 3:37 pm
        
        Bramesh,
        
        I am not talking about the system. I think, u didnt understand my doubt. My doubt is, usually at particular counter ie 8500CE, how will you, how much of them go long and shorter? And also FII and retailer participants.
        
        Thanks.
Jeyaprakash June 2, 2015 4:40 pm

Nifty today unable to break yesterdays high and made all low levels ..8250 is also broken… bramesh ji whats the trend now??? bullish or bearish???

Reply ↓
shyamal June 2, 2015 3:05 pm

brhmesh sir you r fabulous today i also short @8394 your trend change level and booked 50% @8295 and rest as it is with proper sl. superb analysis i did not see even one of advisor like you. very very good level to level trade. i like your 2 words you said we trade with wind means what ever wind is blowing trading on that side. thanks again

Reply ↓
fan June 2, 2015 1:08 pm

Gann playing out..closing day low most prolly.lets hope for the best 😀

Reply ↓
1. Bramesh Post authorJune 2, 2015 1:33 pm
  
  njoy 🙂
  
  Reply ↓