Nifty Fails to Capture 3×4 Gann Angle,27 March Analysis

By | March 26, 2024 10:55 pm

Foreign Institutional Investors (FIIs) displayed a BEARISH  approach in the Nifty Index Futures market by shorting 10614 contracts worth 1168 crores, resulting in a decrease of 5670 contracts in the Net Open Interest. FIIs covered 7099 long contracts and 16945 short contracts were added  by them , indicating a preference for covering LONG and adding SHORT positions .With a Net FII Long Short ratio of 0.48 FIIs utilized the market rise to exit Long positions and enter short positions in NIFTY Futures. Clients have added 7111 long and 2739 Shorts were covered by them.

As Discuused in Last Analysis

Nifty did a close above the 50 SMA and made a high exactly at the Gann angle, as we have discussed in the last few videos. Tomorrow, IT stocks will take a beating as Accenture has lowered the growth forecast, suggesting Nifty may open down. Bears need to break 21,952. We have Mars ingress and Saturn conjunct Venus aspects, both very important as discussed below. Also, we have a trading holiday on Monday, so carry overnight positions with hedges only.

Nifty formed an Inside Bar and traded in the range of Mars Ingress of 22 March. The price is ready for a big move as it failed to close above the 50% Octave Point at 22,118, also struggling to cross the 3×4 Gann angle. With multiple Astro events in the last 2 days, we should see a high-intensity move in Nifty before expiry. Bears need to break 21,952, and bulls need to break 22,080 for a trending move to happen

Nifty Trade Plan for Positional Trade ,Bulls will get active above 22031 for a move towards 212106/22180/22255. Bears will get active below 21957 for a move towards 21882/21808/21733/21659

Traders may watch out for potential intraday reversals at 09:36,11:01,12:32,01:44 How to Find and Trade Intraday Reversal Times

Nifty April  Futures Open Interest Volume stood at 0.59 lakh cr , witnessing a addition  of 18.5 Lakh  contracts. Additionally, the increase in Cost of Carry implies that there was a addition of SHORT positions today.

Nifty Advance Decline Ratio at 20:30 and Nifty Rollover Cost is @22225 closed below it.

Nifty Gann Monthly  Trade level :22278 closed below it.

Nifty has closed below its 20/30 SMA and closed just above 50 SMA.

Nifty options chain shows that the maximum pain point is at 22000 and the put-call ratio (PCR) is at 0.85. 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 22000 strike, followed by 22100 strikes. On the put side, the highest OI is at the 21900 strike, followed by 21800 strikes. This suggests that the market participants are expecting Nifty 50 to remain range between 21800-22100 levels.

According To Todays Data, Retailers Have bought  106  K Call Option Contracts And 728 K Call Option Contracts Were Shorted by them. Additionally, They sold  267 K Put Option Contracts And 198 K Put Option Contracts were Shorted by them, Indicating A Bullish Bias.

In Contrast, Foreign Institutional Investors (FIIs) bought 107 K Call Option Contracts And 209 K Call Option Contracts Were Shorted by them. On The Put Side, FIIs bought 109 K Put Option Contracts And 164  K Put Option Contracts were Shorted by them, Suggesting They Have Turned To Bearish Bias.

In the cash segment, Foreign Institutional Investors (FII) bought 10 crores, while Domestic Institutional Investors (DII) bought 5024 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 22467-21836-21205  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.

You’ve told yourself that you need to follow your rules, that you need to trade smaller, or that you should avoid trading during certain market conditions or times of day. Still you make the same mistakes, lose money, and build frustration., your attempts at change fail because they lack emotional force.

For Positional Traders, The Nifty Futures’ Trend Change Level is At 22256. 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 22004, Which Acts As An Intraday Trend Change Level.

Nifty Intraday Trading Levels

Buy Above 22025 Tgt 22075, 22108 and 22166 ( Nifty Spot Levels)

Sell Below 21952 Tgt 21910, 21864   and 21824  ( 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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