Iran-Israel Tensions: Impact on Nifty – Trade Plan for 28-Oct-2024

By | October 27, 2024 12:15 am

Foreign Institutional Investors (FIIs) displayed a Bullish approach in the Nifty Index Futures market by Buying 23794 contracts worth ₹1432 crores, resulting in a decrease of 3596 contracts in the net open interest. FIIs added 8433 long contracts and covered 9321 short contracts, indicating a preference for adding long positions and covering short positions. With a net FII long-short ratio of 0.49 , FIIs utilized the market fall to enter long positions and exit short positions in Nifty futures. Clients added 724 long contracts and covered 14367 short contracts.  FII are holding 37 % Long and 63% Shorts in Index Futures and Clients are holding 66 % Long and 34 % Shorts in Index Futures.

As Discuused in Last Analysis

Nifty formed a DOJI candle with NR7 and closed above an important Gann level of 24,389. The next two days are crucial, based on Bayer’s astro date as discussed in the video below, and we could see a 300–500 point move in Nifty over the next 2–3 trading sessions. Below 24,343, bears will dominate, while above 24,450, bulls will take control.

Bayer Rule 31: The trend changes when Venus in declination reaches an extreme beyond 23 degrees, 26 minutes, and 51 seconds.

Bayer Rule 30: The trend changes when Venus in declination passes the extreme declination of the Sun.

Bayer Rule 9: Major market changes occur when Mercury passes over 19 degrees, 36 minutes of Scorpio and Sagittarius, and also over 24 degrees, 14 minutes of Capricorn.

Nifty broke the inside bar to the downside, leading to a significant decline as the price approached the 24,050–24,073 range. In the last 30 minutes, we saw notable short covering. The recent news regarding Israel could be interpreted positively for global financial markets:

  • Israel has refrained from any large-scale attacks on civilians, nuclear sites, or oil fields, and there are no signs of sustained military action.
  • This action mirrors past symbolic gestures, similar to Iran’s previous moves towards Israel.
  • The probability of an Iranian retaliation appears very low.
  • Financial markets are driven by probability assessments, and the likelihood of further escalation seems minimal, which could benefit global markets.
  • The U.S. has confirmed that all direct confrontations between Iran and Israel are now resolved.

Today, October 27, marks 16 years since the historic low of October 27, 2008. With ICICI Bank reporting strong numbers, the month nearing its close, and Foreign Institutional Investors (FIIs) actively buying both in index and stock futures, a short-term relief rally could be on the horizon. Equity buying or selling typically follows the FnO cycle. FIIs first take long positions in FnO, then start buying equities to induce a rally, followed by gradually liquidating their FnO longs.

 

Nifty Trade Plan for Positional Trade ,Bulls will get active above 24290 for a move towards 24369/24447/24525. Bears will get active below 24133 for a move towards 24055/23976.

Traders may watch out for potential intraday reversals at 09:27,11:33,12:20,01:45,02:49  How to Find and Trade Intraday Reversal Times

Nifty Sep Futures Open Interest Volume stood at 1.19 lakh cr , witnessing a liquidation of 0.81 Lakh  contracts. Additionally, the increase in Cost of Carry implies that there was closure of SHORT positions today.

Nifty Advance Decline Ratio at 11:39 and Nifty Rollover Cost is @25178 closed below it.

Nifty Gann Monthly  Trade level :25343 close below it.

Nifty closed Below its 100 SMA@24591 Trend is Sell on Rise  till below 24270

Nifty options chain shows that the maximum pain point is at 24200 and the put-call ratio (PCR) is at 0.81 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 24300 strike, followed by 24500 strikes. On the put side, the highest OI is at the 24100 strike, followed by 24200 strikes. This suggests that the market participants are expecting Nifty 50 to remain range between 24200-24500 levels.

In the cash segment, Foreign Institutional Investors (FII) sold 3036  crores, while Domestic Institutional Investors (DII) bought  4159 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 23889-24600-25310-26063-26816 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.

As a trading psychologist, I therefore see my job not in telling you why it is, but in how you can help yourself to find your own solutions to your problems.

For Positional Traders, The Nifty Futures’ Trend Change Level is At 24553 . 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 24202, Which Acts As An Intraday Trend Change Level.

Nifty Intraday Trading Levels

Buy Above 24206 Tgt 24257, 24285 and 24323 ( Nifty Spot Levels)

Sell Below 24166 Tgt 24133, 24080 and 24025 ( 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.

Category: Nifty Astronomy

About Bramesh

Bramesh Bhandari has been actively trading the Indian Stock Markets since over 15+ Years. His primary strategies are his interpretations and applications of Gann And Astro Methodologies developed over the past decade.

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