August 21, 2024 Nifty Trade Blueprint: Navigating the Market with Confidence

By | August 21, 2024 9:25 am

Foreign Institutional Investors (FIIs) displayed a Neutral approach in the Nifty Index Futures market by Buying 265  contracts worth ₹16 crores, resulting in a decrease of 2167 contracts in the net open interest. FIIs added 8456 long contracts and covered 18128 short contracts, indicating a preference for adding long positions and covering short positions. With a net FII long-short ratio of  1.06, FIIs utilized the market rise to exit long positions and add short positions in Nifty futures. Clients added 12415 long contracts and covered 76 short contracts.

As Discuused in Last Analysis

Nifty provided an upward move from the octave point and astro cycle confluence, as discussed in the previous analysis. Yesterday, it reacted from the critical Gann level of 24600. With Bayer Rule 22: The trend changes if retrograde Mercury passes over the Sun. Sun Conjuct Rx Mer is likely to bring a long-term trend change in the market. Therefore, until Monday’s high of 24638 and low of 24522 are broken, it is advisable to avoid taking swing trades.

Nifty moved above the 24638 level and closed above it. As long as the bulls hold 24638 , they maintain the upper hand. If they fail to do so and the price closes below 24638 , it could revisit 24500. Today, with Moon Declination in play, we can expect a volatile move.

 

Nifty Trade Plan for Positional Trade ,Bulls will get active above 24757 for a move towards 24836/24914/24992. Bears will get active below 24601 for a move towards 24522/24444/24300

Traders may watch out for potential intraday reversals at 09:21,11:07,12:20,01:39,02:18  How to Find and Trade Intraday Reversal Times

Nifty Aug Futures Open Interest Volume stood at 1.07 lakh cr , witnessing a liquidation of 1.9Lakh  contracts. Additionally, the increase in Cost of Carry implies that there was a covering of SHORT positions today.

Nifty Advance Decline Ratio at 40:10 and Nifty Rollover Cost is @24503 closed below it.

Nifty Gann Monthly  Trade level :24592 close  above it.

Nifty closed above its 20SMA @22481 Trend is Buy on Dips till above 24592 

Nifty options chain shows that the maximum pain point is at 24600 and the put-call ratio (PCR) is at 1.08 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 24600 strike, followed by 24800 strikes. On the put side, the highest OI is at the 24400 strike, followed by 24200 strikes. This suggests that the market participants are expecting Nifty 50 to remain range between 24400-24800 levels.

In the cash segment, Foreign Institutional Investors (FII) sold  1457 crores, while Domestic Institutional Investors (DII) bought 2252 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 24542. 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 24712, Which Acts As An Intraday Trend Change Level.

Nifty Intraday Trading Levels

Buy Above 24729 Tgt 24763, 24800 and 24864 ( Nifty Spot Levels)

Sell Below 24666 Tgt 24633, 24585 and 24525 (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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