Mercury Ingress Impact: Nifty Fails to Break 21952, 06 Feb Trade Plan

By | February 6, 2024 2:09 am

Analysis of FIIs’ behavior in the Nifty Index Futures market shows a Bullish approach as they displayed a preference for LONG positions. On a net basis, FIIs went LONG  10191 contracts worth 1114 crores, resulting in an increase of 4459 contracts in the Net Open Interest.

As Discussed in Last Analysis

Nifty reacted from the 21952 Gann Level and formed Double Top and also formed Shooting Star, suggesting selling pressure on the higher side. SBI’s numbers came out today, but we are seeing NIM being impacted, similar to HDFC Bank.While there was an Exceptional Writeoff related to Pensions factually they underprovided earlier and had to provide now Net Interest Income has been declining for the last few quarters On Monday, we have Mercury Ingress, which generally leads to a trend change. January 15th was also a Mercury Ingress, and we have seen how Bank Nifty made a short-term top. For intraday trading, watch out for the first 15 minutes high and allow it to capture the trend of the day.

Nifty formed lower low with  selling coming in 2 half of the day. 21952 Gann Number again acted as a resistance and price has corrected from that. 21750 -21650 is important Support zone, Break of 21650 can lead to quick fall towards 21512/21383, Merucry Ingress Leads to big move in NIfty.

Nifty Trade Plan for Positional Trade ,Bulls will get active above 21815 for a move towards 21888/21961/22034 . Bears will get active below 21750 for a move towards 21688/21595/21522/21448.

Traders may watch out for potential intraday reversals at 09:15,11:34,12:16,01:02,2:42 How to Find and Trade Intraday Reversal Times

Nifty Feb Futures Open Interest Volume stood at 1.17 lakh cr , witnessing a liquidation of 0.14 Lakh  contracts. Additionally, the increase in Cost of Carry implies that there was a closure of LONG positions today.

Nifty Advance Decline Ratio at 13:37  and Nifty Rollover Cost is @21592 closed below it.

Nifty Gann Monthly  Buy Trade level : 21915 and Gann Monthly  Sell Trade level : 21646

Nifty has closed above  its above DMA 21650

Nifty options chain shows that the maximum pain point is at 21750 and the put-call ratio (PCR) is at 0.90. 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 21800 strike, followed by 22000 strikes. On the put side, the highest OI is at the 21700 strike, followed by 21600 strikes. This suggests that the market participants are expecting Nifty 50 to remain range between 21600-21800 levels.

In the cash segment, Foreign Institutional Investors (FII) bought  518 crores, while Domestic Institutional Investors (DII) sold 1188  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 21146-21775-22404 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.

If you want to be a good trader “Be the Best Listener.” Listen To Market, Experienced Traders. If a losing trade sets you off, then this can affect your trades going forward. And this is dangerous. We call this trading on “tilt.”

For Positional Traders, The Nifty Futures’ Trend Change Level is At 21784 . 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 21903, Which Acts As An Intraday Trend Change Level.

Nifty Intraday Trading Levels

Buy Above 21800 Tgt 21824, 21868 and 21920 ( Nifty Spot Levels)

Sell Below 21743 Tgt 21714, 21666 and 21640 (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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