RBI Monetary Policy June 2024 : Nifty Trade Plan for 07 June 2024

By | June 6, 2024 11:48 pm

Foreign Institutional Investors (FIIs) displayed a Bullish  approach in the Nifty Index Futures market by Buying 13799  contracts worth ₹1566 crores, resulting in a decrease of 19123 contracts in the net open interest. FIIs covered 8727 long contracts and covered 32908 short contracts, indicating a preference for covering long positions and covered of short positions. With a net FII long-short ratio of 0.16, FIIs utilized the market rise to exit long positions and exit short positions in Nifty futures. Clients covered 10011 long contracts and added 27586 short contracts.

As Discuused in Last Analysis

Nifty showed a good recovery once above 21952, Nifty is showing wild moves due to election newsflow and astro impact of Venus, With Weekly expiry the impact become multi fold. Traders need to trade with less position size with these wild swing Tommrow we hae NEW MOON so another round of voaltile move will be seen, VWAP of last 2 days is 22284-22299 so move on both upside and downside are extended and price need to come back to 22300-22400 range to bring some sanity back in Nifty. Tommrow also watch for 15 mins High and Low to plan the trade.

We have RBI Policy tommrow which should be an NON EVENT with Status Quo, But we are seeing Rise in Bond Yields so RBI Governor statement will be closely watched. Today we ha NEW MOON and tommrow we have Moon Declination, so it would lead to another volatile session tommrow.Nifty has Formed a DOJI on Lunar Cycle date suggesting we can see trend reversal once we break 22630.

 

Nifty Trade Plan for Positional Trade ,Bulls will get active above 22868  for a move towards 22943/23018/23094/23169. Bears will get active below 22793  for a move towards 22717/22642/22555

Traders may watch out for potential intraday reversals at 09:19,11:35,12:36,1:19,2:38 How to Find and Trade Intraday Reversal Times

Nifty June Futures Open Interest Volume stood at 1.34 lakh cr , witnessing a addition  of 5.3 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 @22960 closed below it.

Nifty Gann Monthly  Trade level :23338 close  below it.

Nifty closed above its 20SMA @22528 Trend is Sell on Rise.

Nifty options chain shows that the maximum pain point is at 22800 and the put-call ratio (PCR) is at 1.06 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 22900 strike, followed by 23000 strikes. On the put side, the highest OI is at the 21600 strike, followed by 21500 strikes. This suggests that the market participants are expecting Nifty 50 to remain range between 21500-23000 levels.

According To Todays Data, Retailers Have sold 279  K Call Option Contracts And 226 K Call Option Contracts Were Shorted by them. Additionally, They sold 112 K Put Option Contracts And 884 K Put Option Contracts were Shorted by them, Indicating A Bullish  Bias.

In Contrast, Foreign Institutional Investors (FIIs) sold 552 K Call Option Contracts And 838 K Call Option Contracts Were Shorted by them. On The Put Side, FIIs sold 639 K Put Option Contracts And 712 K Put Option Contracts were Shorted by them, Suggesting They Have Turned To Neutral Bias.

In the cash segment, Foreign Institutional Investors (FII) sold 6867 crores, while Domestic Institutional Investors (DII) bought 3718 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 21146-21775-22404-23071-23737  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 can’t try to be a disciplined trader. You must be a disciplined person to be a disciplined trader. Trading is a reflection of your personal Life. A Trader cannot become a profitable trader until he becomes a more disciplined person.

For Positional Traders, The Nifty Futures’ Trend Change Level is At 22686. 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 22840, Which Acts As An Intraday Trend Change Level.

Nifty Intraday Trading Levels

Buy Above 22848 Tgt 22888, 22936 and 23000 ( Nifty Spot Levels)

Sell Below 22806 Tgt 22776, 22729 and 22666 (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.

Leave a Reply