NIfty Forms DOJI Near 50 DMA , 26 Sep 2023 Analysis

By | September 26, 2023 12:53 am

 

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 10449 contracts worth 1029 crores, resulting in an increase of 4761  contracts in the Net Open Interest.

As Discussed in Last Analysis

Nifty is back towards its 20/50 DMA and Gann angle support is coming at 19500.Today being weekly close bears would like to close below 19683 important gann number for dowmove to continue towards 19321. Today we have Mercury at Greatest Elong: 17.9°W and tommrow  Autumnal Equinox so watch for 15 mins high and low to capture trend for the day.

Nifty formed a perfect DOJI near gann angle Gann Rule worked perfectly If a price is rising for 9 consecutive day’s at a stretch, then there is a high probability of a correction for 5 consecutive days. (Ratio is 9:5)

Now  Bulls need a close above 19729 for the correction to get over else Bears below 19600 can see quick fall towards 19424.Mercury Trine Jupiter Aspect today suggesting break of todays high and low can lead to trending move.

 

Nifty Trade Plan for Positional Trade ,Bulls will get active above 19741 for a move towards 19810/19888/19950 . Bears will get active below 19600 for a move towards 19533/19463/19394

Traders may watch out for potential intraday reversals at 9:34,10:12,11:25,1:28,2:45 How to Find and Trade Intraday Reversal Times

Nifty Sep Futures Open Interest Volume stood at 0.77  lakh cr , witnessing a liquidation of  9.1 lakh contracts. Additionally, the increase in Cost of Carry implies that there was a liquidation of SHORT positions today.

Nifty Advance Decline Ratio at 24:26 and Nifty Rollover Cost is @19445 and Rollover is at 74.1 %.

Nifty closed below 20 SMA and took Support at 50 SMA.

Nifty options chain shows that the maximum pain point is at 19650 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 -198000  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 2333 crores, while Domestic Institutional Investors (DII) bought 1579 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 create money management, position size calculation or the elaboration of a profitable set of rules. All of these very useful tools are of little help if you are not able to use them in a disciplined manner.

For Positional Traders, The Nifty Futures’ Trend Change Level is At 19836. 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 19668, Which Acts As An Intraday Trend Change Level.

Nifty Intraday Trading Levels

Buy Above 19700  Tgt 19729, 19777 and 19816 ( Nifty Spot Levels)

Sell Below 19648 Tgt 19624, 19601  and 19576 (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.

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