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 3015 contracts worth 318 crores, resulting in an increase of 12385 contracts in the Net Open Interest.
Nifty Bears were able to brerak 20945 went down till 20769, but failed to do our target of 20656. We will open gap up today with US FED Singalling Rate Cut in Feb 2024. The yield on 10-year U.S. Treasuries fall below 4% for the first time since August. Bulls need to sustain above 21129 for a move towards 21201/21273/21346. Today Moon is going to extreme declination so first 15 mins will guide intraday traders.
Nifty broke the 15-minute high on the upside and witnessed a strong rally, achieving a fresh all-time high today. With tomorrow marking the weekly close, bulls are poised to conclude on a high note. Today marked the day when many shorts were flushed out of the system, boosted by positive macro news and a technical breakout. Remember the rule of the stock market: the expensive will become more expensive until the last bear has surrendered. Additionally, today marked the 5th gap from the rally that began on November 22. The next gap, when and if it occurs, will likely be filled.
Nifty Trade Plan for Positional Trade ,Bulls will get active above 21201 for a move towards 21273/21346. Bears will get active below 21129 for a move towards 21057/20985.
Traders may watch out for potential intraday reversals at 9:18,11:55,12:46,2:52 How to Find and Trade Intraday Reversal Times
Nifty Dec Futures Open Interest Volume stood at 1.28 lakh cr , witnessing a addition of 20 lakh contracts. Additionally, the increase in Cost of Carry implies that there was a addition of LONG positions today.
Nifty Advance Decline Ratio at 36:14 and Nifty Rollover Cost is @20223 closed above it.
Nifty Gann Monthly Trend Change Level : 20729
Nifty has closed above all short term moving averges Trend is Buy on dips till we are holding above 20816.
Nifty options chain shows that the maximum pain point is at 21200 and the put-call ratio (PCR) is at 0.89. 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 21200 strike, followed by 21300 strikes. On the put side, the highest OI is at the 21100 strike, followed by 21000 strikes. This suggests that the market participants are expecting Nifty 50 to remain range between 21000-21300 levels.
In the cash segment, Foreign Institutional Investors (FII) bought 3570 crores, while Domestic Institutional Investors (DII) bought 553 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 20552-21146-21775 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.
My advice to any new traders is to seek a mentor who will offer you trading skills that will allow you to adapt to any market. What works one month may not work the next. But with fully developed trading skills, you can make the necessary adjustments.
Nifty Intraday Trading Levels
Buy Above 21200 Tgt 21237, 21280 and 21323 ( Nifty Spot Levels)
Sell Below 21142 Tgt 21101, 21066 and 21022 ( 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.