Venus Retrograde leads to Crash in Nifty, How to Trade Now ?

FII sold 14 K contract of Index Future worth 1163 cores, Net OI has decreased by 7.1 K contract 10.5 K Long contract were added by FII and 3.4 K Shorts were added by FII. Net FII Long Short ratio at 1.29 so FII used FALL to EXIT longs and ENTER Shorts.

As Discussed in Last Analys All target done on downside and tommrow we are near 166 days for 29 Jan Bottom and we have important astro event happening on Weekend , 1. RULE NO. 38 MERCURY LATITUDE HELIOCENTRIC Some mighty fine tops and bottoms are produced when Mercury in this motion passes the above mentioned degrees 0, 3*21,6*42, and 7*0’” 2. Venus Retrograde 3. Chiron Ingres 4. Full Moon 5. Moon at Apogee so time to be cautious on short as 5 Astro event happening can lead to strong reversal once price confirmation happens. Bulls need to move above 17035 for a move towards 17083/17132/17200. Bears below 16969 for a move towards 16903/16837/16772. We had a simple rule 15 mins High and Low as it was important astro date as multiple astro events were lined up and we got rewarded. Also we saw the power of Venus Retrograde, Now we are back to gann angle support and Sun Moving in Capricon and also yearly gann cycle on 21 Dec. Check last week 21 Dec we made a bottom and rallied. Bulls need to move above 16794 for a move towards 16922/17050. Bears will get active towards 16666 for a move towards 16538/16410.

Intraday time for reversal can be at 9:15/10:58/12/1:58/2:34 How to Find and Trade Intraday Reversal Times

MAX Pain is at 16700 PCR at 0.83, PCR below 0.9 and above 1.3 lead to trending moves, and in between leads to range bound markets. So, after all the mayhem, we are probably returning to sanity is what is indicated by the rising PCR.

Nifty Dec Future Open Interest Volume is at 1.02 Cores with liquidation of 6.2 Lakh with decrease in cost of carry suggesting SHORT positions were closed today.

There is total OI of 9.15 Cores on the Call side and 4.34 Cores on the Put side, So, the activity is more on the CALL side, indicating option writers are in BEARISH zone.

I will not be surprised if we do make a short term bottom yesterday, and do a green rush for the rest of the month to facilitate the yearly closing of NAV’s for FII’s. As it is, such long time projections are useless and in fact injurious to your trading account. So, stay in present, and try to play this rough week as expected. We can take things as they come.

The option table is undergoing a real transformation – with each day one CE level is targeted with huge volumes of writing and the strike is giving way to much lower strikes.Talking about supports and resistance based on OI at this stage is not quite relevant because, with the kind of mayhem going on, no strike is safe

FII’s sold 3565 cores and DII’s bought 2764 cores in cash segment.INR closed at 75.93

Retailers have bought 483 K CE contracts and 383 K CE contracts were shorted by them on Put Side Retailers bought 163 K PE contracts and 94 K PE contracts were shorted by them suggesting having BEARISH outlook,On Flip Side FII bought 58.2 K CE contracts and 57.6 K CE were shorted by them, On Put side FII’s bought 163 K PE and 9 K shorted PE were covered by them suggesting they have a turned to NEUTRAL Bias.

Do not let the extreme volatility fool you. This market is going nowhere – and is completely directionless. Institutions are making good money by writing options on both sides. To illustrate the point – NF closed @ 17033 on 30th Nov. After 15 days of trading, today NF has closed at 17023 . A mega fall of 10 points.It looks more like a time correction if you look at big picture. Finally we got the range breakdown and it was a brutal fall.

For Positional Traders Stay long till we are holding Trend Change Level 17076 and stay short below it. That will help you stay on the side of Institutions and which has a greater risk-reward ratio. For Intraday Traders 16621 will act as a Intraday Trend Change Level.