Foreign Institutional Investors (FII) showed a Bearish approach in the Index Futures market by Selling 24.4 K contracts worth 2253 crores, resulting in a increase of 17.6 K contracts in the Net Open Interest. FII sold 3.3 K long contracts and added 21 K short contracts, indicating a preference for Short positions. With a Net FII Long Short ratio of 0.25, FII used the market fall to exit long and enter short positions in Index Futures.
Nifty saw a correction today as prices came down to touch the Gann angle 4×3 line. With the weekly close approaching, a price close around 17666-17680 would be best for next week. This is due to the upcoming “Bayer Rule 15: Venus Heliocentric Latitude at Extreme and Least Speeds for Major Moves” effect on Monday. While financial markets are complex, observing technical analysis tools like the Gann angle and financial astrology theories like Bayer Rule 15 can provide insights into potential market movements.
Swing traders can expect a potential move towards 17630, 17700, or 17722 if the market trades above 17630. However, if the market falls below 17559 , bears may become more active, leading to a move towards 17493,17427.
Nifty options chain shows that the maximum pain point is at 17600 and the put-call ratio (PCR) is at 1.07. Typically, when the PCR open interest ranges between 0.90 and 1.05, the market tends to remain range-bound. This suggests that Nifty may trade within a range of 17600-17900 levels in the near term
The Nifty Futures Rollover cost currently stands at 17844, and once this level was crossed, it triggered a significant rally
The price is once again approaching the crucial 30 SMA Level at 17601 , and this level will be crucial on Friday.
Nifty 50 Options Chain Analysis
The Nifty 50 options chain indicates that the highest open interest (OI) on the call side is at the 17,700 strike, followed by 17,800 strikes. On the put side, the highest OI is at the 17500 strike, followed by 17400 strikes. This suggests that the market participants are expecting Nifty 50 to remain range between 17500-17700 levels.
In the cash segment, Foreign Institutional Investors (FII) sold 561 crores, while Domestic Institutional Investors (DII) bought 42crores.
According to the musical octave trading path, Nifty may follow the path of 17804-17538-17274, so traders should take a position and ride the move.
“To be a successful trader, you have to be able to admit mistakes. People who are very bright don’t make very many mistakes. They don’t make very much money.” – William O’Neil