08 August 2024 Nifty Analysis: How RBI Policy and Astrology Align

By | August 8, 2024 9:09 am

Foreign Institutional Investors (FIIs) displayed a Bearish approach in the Nifty Index Futures market by Shorting 5698  contracts worth ₹345  crores, resulting in a increase of 1418 contracts in the net open interest. FIIs covered 5061 long contracts and added 9677 short contracts, indicating a preference for covering long positions and adding short positions. With a net FII long-short ratio of  1.9, FIIs utilized the market rise to exit long positions and add short positions in Nifty futures. Clients covered 20440 long contracts and covered 24371 short contracts.

As Discuused in Last Analysis

Nifty continues to trade within 1×1 Gann angle resistance zone, as shown in the chart below. The price has yet to break above the 25000 high of the Saturn-Jupiter aspect or below the 24774 low of the Jupiter-Saturn aspect. A break on either side can lead to a move of 176-220 points.

Patience is a crucial skill for traders, and waiting for the right trade setup is essential. Today, being the first day of the month, the market open will be an important level to watch to capture the trend for the day. The price will also react to the dovish Fed commentary from last night. Additionally, the recent 32k tax demand on Infosys might lead to a fall in IT stocks and a rise in bank stocks.

We have seen the impact of Mercury’s speed retrograde and the double ingress of Venus and Mercury, as discussed in the video below, on Nifty.

Nifty will be completing 45 days on 08 August from the 04 June low. According to Gann studies, 45 days are very significant. We also have “Bayer Rule 2: Trend goes down within 3 days when the speed difference between Mars and Mercury is 59 minutes, leading to a big move,” and the aspect of Venus conjunct Mercury, which is very significant for short-term swing trading. This confluence of Gann and astro cycles suggests we might see a big move today. The first 15 minutes’ high and low will guide the trend for the day.

Nifty Trade Plan for Positional Trade ,Bulls will get active above 24304 for a move towards 24382/24444/24512. Bears will get active below 24148 for a move towards 24070/23992/23914

Traders may watch out for potential intraday reversals at 09:15,10:20,01:37,02:45,03:00 How to Find and Trade Intraday Reversal Times

Nifty Aug Futures Open Interest Volume stood at 1.27 lakh cr , witnessing a liquidation of 7  Lakh  contracts. Additionally, the increase in Cost of Carry implies that there was a closure of LONG positions today.

Nifty Advance Decline Ratio at 42:08 and Nifty Rollover Cost is @24503 closed below it.

Nifty Gann Monthly  Trade level :24270 close  above  it.

Nifty closed below its 20SMA @24546 Trend is Sell on Rise.

Nifty options chain shows that the maximum pain point is at 24200 and the put-call ratio (PCR) is at 0.95Typically, 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 24300 strike, followed by 24400 strikes. On the put side, the highest OI is at the 24100 strike, followed by 24000 strikes. This suggests that the market participants are expecting Nifty 50 to remain range between 24000-24400 levels.

In the cash segment, Foreign Institutional Investors (FII) sold  3314 crores, while Domestic Institutional Investors (DII) bought 3801 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.

Your losing trades do not diminish you as a person. You are not your losing trades. You are also not your winning trades either. They are simply by-products of the business that you’re in.

For Positional Traders, The Nifty Futures’ Trend Change Level is At 24659 . 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 24313, Which Acts As An Intraday Trend Change Level.

Nifty Expiry Range

Upper End of Expiry : 24453

Lower End of Expiry : 24042

 

Nifty Intraday Trading Levels

Buy Above 24266 Tgt 24299, 24323 and 24385 ( Nifty Spot Levels)

Sell Below 24200 Tgt 24166, 24133 and 24085 (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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