Nifty 31 May 2024 Trade Plan

By | May 31, 2024 8:59 am

Foreign Institutional Investors (FIIs) displayed a Bearish approach in the Nifty Index Futures market by shorting 102185  contracts worth ₹5782   crores, resulting in a decrease of 148047 contracts in the net open interest. FIIs covered 206110 long contracts and added 86482 short contracts, indicating a preference for covering long positions and addition short positions. With a net FII long-short ratio of .95, FIIs utilized the market fall to exit  long positions and enter short positions in Nifty futures. Clients added 102039 long contracts and covered  95181 short contracts.

As Discuused in Last Analysis

NIfty has shown sign of reversal wiith closing below previous day low, TOday is important gann date as discussed in below video so intraday traders can watch for fiorst 15 mins high and low to capture trend for the day. 

Gann Date worked perfectly, Today we have monthly closing so Bulls and Bears will fight for 22567, Price closing at 22567 would be perfect for the day and monthly close. Today we have MSCI rejig tomorrow (USD 2.5 bn expected inflows) so watch out for 3 PM candel, Exit poll on the weekend which will favour mostly BJP so we can see gap up opening on MOnday so carry overnight positions with hedge.

Nifty Trade Plan for Positional Trade ,Bulls will get active above 22566 for a move towards 22641/22716 Bears will get active below 22491  for a move towards 22417/22343. 

Traders may watch out for potential intraday reversals at 10:28,11:25,12:27,1:11,2:28 How to Find and Trade Intraday Reversal Times

Nifty May Futures Open Interest Volume stood at 1.37 lakh cr , witnessing a adition   of 44.8 Lakh  contracts. Additionally, the increase in Cost of Carry implies that there was a adition of LONG positions today.

Nifty Advance Decline Ratio at 10:40 and Nifty Rollover Cost is @22960  closed below it. Rollover at 68.4 % 

Nifty Gann Monthly  Trade level :22320 close  above it.

Nifty closed above its 20 SMA @22480  Trend is Buy on Dips.

Nifty options chain shows that the maximum pain point is at 22700 and the put-call ratio (PCR) is at 1.26. 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 22700  strike, followed by 22800  strikes. On the put side, the highest OI is at the 22600 strike, followed by 22500 strikes. This suggests that the market participants are expecting Nifty 50 to remain range between 22500-22800 levels.

According To Todays Data, Retailers Have sold 361 K Call Option Contracts And 412 K Call Option Contracts Were Shorted by them. Additionally, They sold 220 K Put Option Contracts And 244 K Put Option Contracts were Shorted by them, Indicating A Bullish  Bias.

In Contrast, Foreign Institutional Investors (FIIs) sold  100 K Call Option Contracts And 462 K Call Option Contracts Were Shorted by them. On The Put Side, FIIs sold 535 K Put Option Contracts And 141 K Put Option Contracts were Shorted by them, Suggesting They Have Turned To Neutral Bias.

In the cash segment, Foreign Institutional Investors (FII) sold 3050 crores, while Domestic Institutional Investors (DII) bought 3432 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 21775-22404-23071  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.

P&L is not dictated by our predictions but our trading skill And when you develop trading skills, it does not matter whether you accurately predict the top in a sector. It just matters that that sector is active. As long as it moves.

For Positional Traders, The Nifty Futures’ Trend Change Level is At 22678 . 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 22678 , Which Acts As An Intraday Trend Change Level.

Nifty Intraday Trading Levels

Buy Above 22512 Tgt 22555, 22610 and 22666 ( Nifty Spot Levels)

Sell Below 22480 Tgt 22444, 22410  and 22385 (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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