Foreign Institutional Investors (FIIs) displayed a Bullish approach in the Index Futures market by Buying 4381 contracts worth 415 crores, resulting in a decrease of 2133 contracts in the Net Open Interest. FIIs bought 1124 long contracts and covered 3257 short contracts, indicating a preference for Long positions .With a Net FII Long Short ratio of 0.84 , FIIs utilized the market fall to exit long positions and enter short positions in Index Futures.
Nifty after 9 Days closed below the previous Day Low potentially forming evening star pattern and today being an important astro date. We will see FOMC decision Today FOr any reversal to take place bears need a close below 18025.
An evening star is a stock-price chart pattern used by technical analysts to detect when a trend is about to reverse. It is a bearish candlestick pattern consisting of three candles: a large white candlestick, a small-bodied candle, and a red candle.
Nifty was unable to breach the May 3rd low of 18042, and once the high of 18116 was crossed, bulls had the upper hand, and the price has closed above the 1×2 Gann angle. Nifty is also approaching the January high of 18252 and the musical octave of 18275. Bulls have the upper hand until they can close above 18042. As a trader, our job is to stay with the trend and not anticipate the next move by taking aggressive positions. Nifty has decoupled from the global market, but as a trader, we should remain alert and not get carried away by news. For Reversal Nifty has to close below 20 SMA on 1 Hour chart.
The stock market is a complex system influenced by various factors, including economic indicators, political events, and natural phenomena. One such natural phenomenon is the lunar eclipse, which has been observed to potentially impact the stock market, particularly the Nifty index. A lunar eclipse occurs when the Earth passes between the Sun and the Moon, casting a shadow on the Moon. This celestial event is visible from most parts of the world when the Moon is in the full moon phase.
Historical trends suggest that lunar eclipses can have a short-term impact on the stock market, with a potential dip in performance during and after the eclipse. A study conducted by the National Bureau of Economic Research found that stock market returns were significantly lower during lunar eclipses compared to non-eclipse days
All Bullish target done as per NR 7 pattern. Now Bulls need to move above 18311 for a move towards 18378/18445. Bears will get active below 18176 for a move towards 18109/18042.
Traders may watch out for potential intraday reversals at 10:12,11:28,12:33,2:31 How to Find and Trade Intraday Reversal Times
Nifty May Futures Open Interest Volume stood at 0.95 lakh, witnessing a liuidation of 0.13 lakh contracts. Additionally, the increase in Cost of Carry implies that there was a addition of Long positions today.
Nifty Rollover Cost is @17885 and Rollover is at 58.7 %
Nifty options chain shows that the maximum pain point is at 18200 and the put-call ratio (PCR) is at 0.98. Typically, when the PCR open interest ranges between 0.90 and 1.05, the market tends to remain range-bound.
We are 4 trading days old in this series. It has been a remarkable series – We made a low of 17885 on the first day of the series. And from then on, apart from a minor 150 point correction on 03 May we have closed all the days in green. A remarkable rally born out of complete bearishness in March . And which changed the complete complexion of the game.
Nifty 50 Options Chain Analysis
The Nifty 50 options chain indicates that the highest open interest (OI) on the call side is at the 18300 strike, followed by 18400 strikes. On the put side, the highest OI is at the 18200 strike, followed by 17100 strikes. This suggests that the market participants are expecting Nifty 50 to remain range between 18000-18400 levels.
In the cash segment, Foreign Institutional Investors (FII) bought 1414 crores, while Domestic Institutional Investors (DII) bought 414 crores.
Traders who follow the musical octave trading path may find valuable insights in predicting Nifty’s movements. According to this path, Nifty may follow a path of 17744-18272-18800 This means that traders can take a position and potentially ride the move as Nifty moves through these levels.Of course, it’s important to keep in mind that trading is inherently risky and market movements can be unpredictable. Price has come near 18272
You need to absorb losses if you cannot absorb string of loss how you can really last in this kind of business.
For Positional Traders, The Nifty Futures’ Trend Change Level is At 18117 . Going Long Or Short Above Or Below This Level Can Help Them Stay On The Same Side As Institutions, With A Higher Risk-reward Ratio. Intraday Traders Can Keep An Eye On 18232 , Which Acts As An Intraday Trend Change Level.