Nifty Monthly Close Analysis for May 2023

By | May 30, 2023 10:00 pm

Foreign Institutional Investors (FIIs) displayed a Bullish  approach in the Nifty Index Futures market by Buying 4796  contracts worth 448 crores, resulting in a increase of 3550 contracts in the Net Open Interest. FIIs bought 4010  long contracts and added 1253 short contracts, indicating a preference for adding NEW LONG positions .With a Net FII Long Short ratio of 1.54, FIIs utilized the market rise to enter Long positions and enter short positions in NIFTY Futures.

 

As Discussed in Last Analysis Nifty traded with in the first 15 mins range through out the day and formed NR7 on daily chart, Nifty today candle looks similar to 14 Dec 2020 Candle. Tommrow we have Bayer Rule 7: There are changes on market when Venus or Mars goes over its Aphelium Perihelium (Geocentric). As it involves Venus which have big Impact on Nifty.

Nifty continued  with its upmove, we have monthly close tommrow Bulls would like to close above 18666 and Bears below 18500.

FII have been relentlessly Buying in equities. They have net Bought approximately 24 K crore so far this month and DII sold just 777 cores in May and Nifty is up just 3% for the month.

 

 

 

Trade Plan based on Astro Date, For Swing Traders Bulls need to move above 18641 for a move towards 18701/18761 . Bears will get active below 18581 for a move towards 18521/18461

 

 

 

Traders may watch out for potential intraday reversals at 9:38,10:08,12:53,1:55  How to Find and Trade Intraday Reversal Times

Nifty June Futures Open Interest Volume stood at 0.99 lakh, witnessing a addition of 3.4 lakh contracts. Additionally, the increase in Cost of Carry implies that there was a addition of LONG positions today.

Nifty Advance Decline Ratio at 23:27 and Nifty Rollover Cost is @18407 and Rollover is at 66.8%.

Nifty options chain shows that the maximum pain point is at 18600 and the put-call ratio (PCR) is at 1.01. Typically, when the PCR open interest ranges between 0.90 and 1.05, the market tends to remain range-bound.

Nifty 50 Options Chain Analysis

The Nifty 50 options chain indicates that the highest open interest (OI) on the call side is at the 18700 strike, followed by 18800 strikes. On the put side, the highest OI is at the 18400 strike, followed by 18300  strikes. This suggests that the market participants are expecting Nifty 50 to remain range between 18500-18800 levels.

In the cash segment, Foreign Institutional Investors (FII) bought 2085 crores, while Domestic Institutional Investors (DII) sold 438 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 close above 18272

 

Don’t trade on emotion. Trading is a numbers game, and it’s important to make decisions based on logic and analysis, not emotion.

For Positional Traders, The Nifty Futures’ Trend Change Level is At 18563 . 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 18701 , Which Acts As An Intraday Trend Change Level.

Intraday Trading Levels

Buy Above 18666 Tgt 18699, 18729 and 18777 (Nifty Spot Levels)

Sell Below 18570 Tgt 18547, 18520 and 18485 (Nifty Spot Levels)

Wishing you good health and trading success as always.As always, prioritize your health and trade with caution.

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