Autumnal Equinox : Nifty Trade Plan 22 Sep 2023

 

Analysis of FIIs’ behavior in the Nifty Index Futures market shows a Bearish approach as they displayed a preference for SHORT positions. On a net basis, FIIs went SHORT 3328 contracts worth 333  crores, resulting in an increase of 4462 contracts in the Net Open Interest.

As Discussed in Last Analysis

Nifty Trade Plan for Positional Trade ,Bulls will get active above 19911 for a move towards 19982/20053. Bears will get active below 19836 for a move towards 19769/19698 – All Target done Now break of 19686 can lead to fall towards 19555/19485/19321

Traders may watch out for potential intraday reversals at 9:48,11:43,12:40,02:22 How to Find and Trade Intraday Reversal Times

Nifty Sep Futures Open Interest Volume stood at 0.90 lakh cr , witnessing a liquidation of  5.3 lakh contracts. Additionally, the increase in Cost of Carry implies that there was a liquidation of SHORT positions today.

Nifty Advance Decline Ratio at 16:34 and Nifty Rollover Cost is @19445 and Rollover is at 74.1 %.

Nifty is near its 20/50 SMA till 19683 is protected Bulls have upper hand. Once 1 hour close below 19683 bears will see fall towards 19500

Nifty options chain shows that the maximum pain point is at 19700 and the put-call ratio (PCR) is at 0.8. 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 19700 strike, followed by 19800 strikes. On the put side, the highest OI is at the 19600 strike, followed by 19500 strikes. This suggests that the market participants are expecting Nifty 50 to remain range between 19500 -197000  levels.Total Call OI is 9.95 cr and Total Put OI is 6.58 cr

In the cash segment, Foreign Institutional Investors (FII) sold 3328 crores, while Domestic Institutional Investors (DII) sold 333 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 18890-19452-20014 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 closed below 20014 heading towards 19452

To outperform the market and to succeed in trading, a trader needs to take charge of his emotions. To start off, he requires a patient and confident mind.

For Positional Traders, The Nifty Futures’ Trend Change Level is At 19851. 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 19797, Which Acts As An Intraday Trend Change Level.

Nifty Intraday Trading Levels

Buy Above 19754  Tgt 19779, 19824 and 19864 ( Nifty Spot Levels)

Sell Below 19700 Tgt 19666, 19633  and 19600 (Nifty Spot Levels)

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

As always, it’s essential to closely monitor market movements and make informed decisions based on a well-thought-out trading plan and risk management strategy. Market conditions can change rapidly, and it’s crucial to be adaptable and cautious in your approach.