Nifty Trade Plan for 26-Jul-2024

By | July 25, 2024 10:31 pm

Foreign Institutional Investors (FIIs) displayed a Bullish approach in the Nifty Index Futures market by Buying 6324 contracts worth ₹398 crores, resulting in a decrease of 211790 contracts in the net open interest. FIIs covered 176423 long contracts and added 1256 short contracts, indicating a preference for covering long positions and adding of short positions. With a net FII long-short ratio of  3.7 , FIIs utilized the market fall to exit long positions and enter short positions in Nifty futures. Clients added 13362 long contracts and covered 50551 short contracts.

As Discuused in Last Analysis

Tomorrow we will have Mercury Ingress. Mercury, being the nearest planet to the Sun, has a major impact on Nifty and Reliance. Additionally, with the Moon being the nearest to Earth, we will see a significant impact on Nifty. The Moon, being the planet of emotions, will cause volatile movements. We can expect an explosive move in Nifty; watch for the first 15 minutes’ high and low to capture the trend for the day.

Mercury Ingress showed its impact with a gap-down opening, but as usual, the dips were bought into. Nifty broke its 15-minute high and rallied on the upside. The price made a low at 24,210, near the Gann Monthly Trend Change level of 24,215. As tomorrow is the first day of the August series and a weekly close, bulls would like to close around the 24,445-24,465 range. As long as 24,210 is held, bulls have the upper hand. Nifty is showing excellent strength and outperforming Bank Nifty and the global market significantly, thanks to sector rotation and the strength of IT stocks.

Nifty Trade Plan for Positional Trade ,Bulls will get active above 24438 for a move towards 24516/24595. Bears will get active below 24360 for a move towards 24281/24203/24124.

Traders may watch out for potential intraday reversals at 09:15,10:56,01:39,02:33 How to Find and Trade Intraday Reversal Times

Nifty Aug Futures Open Interest Volume stood at 1.25 lakh cr , witnessing a addition of 23 Lakh  contracts. Additionally, the increase in Cost of Carry implies that there was a addition of LONG positions today.

Nifty Advance Decline Ratio at 22:28 and Nifty Rollover Cost is @24503 closed below it.

Nifty Gann Monthly  Trade level :24270 close  above  it.

Nifty closed above its 20SMA @24349 Trend is Buy on Dips.

Nifty options chain shows that the maximum pain point is at 24400 and the put-call ratio (PCR) is at 1.02 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 24500 strike, followed by 24600 strikes. On the put side, the highest OI is at the 24300 strike, followed by 24200 strikes. This suggests that the market participants are expecting Nifty 50 to remain range between 24200-24700 levels.

In the cash segment, Foreign Institutional Investors (FII) sold  2605  crores, while Domestic Institutional Investors (DII) bought 2431 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 23889-24600-25310 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.

Trader make Error because of expectation, Our Mind think because pattern has emerged its giving us an EDGE on that particular trade and we have no way of knowing it but over a series of trade it will show the effect.

For Positional Traders, The Nifty Futures’ Trend Change Level is At 24412. 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 24412, Which Acts As An Intraday Trend Change Level.

Nifty Intraday Trading Levels

Buy Above 24440 Tgt 24485, 24520 and 24575 ( Nifty Spot Levels)

Sell Below 24375 Tgt 24339, 24300 and 24275 (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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