Foreign Institutional Investors (FIIs) displayed a Bullish approach in the Nifty Index Futures market by Buying 11372 contracts worth ₹686 crores, resulting in a decrease of 2244 contracts in the net open interest. FIIs added 13792 long contracts and covered 21893 short contracts, indicating a preference for adding long positions and covering short positions. With a net FII long-short ratio of 0.47 , FIIs utilized the market rise to enter long positions and exit short positions in Nifty futures. Clients covered 45156 long contracts and covered 22453 short contracts. FII are holding 40% Long and 60 % Shorts in Index Futures and Clients are holding 66 % Long and 34 % Shorts in Index Futures.
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 saw a reversal in line with Bayer Rule 9, which indicates that significant market changes occur when Mercury passes over 19 degrees 36 minutes of Scorpio and Sagittarius, as well as 24 degrees 14 minutes of Capricorn and Gann cycle date, as discussed in the video below.
Today, bulls need to close above the 24,474–24,500 range and maintain support at 24,270 during intraday volatility. For confirmation of a short-term bottom, the price needs to close above the 1×1 Gann line. With today’s Moon Declination, the first 15 minutes’ high and low should guide the day’s trend.
Following my theory, equity buying or selling typically aligns with the FnO cycle. FIIs often first take long positions in FnO, then start buying equities to drive a rally, eventually unwinding their FnO longs. FIIs have recently started buying in both stock and index futures, suggesting that cash market selling could ease soon.
Nifty Trade Plan for Positional Trade ,Bulls will get active above 24367 for a move towards 24447/24525/24601. Bears will get active below 24290 for a move towards 24212/24134.
Traders may watch out for potential intraday reversals at 10:06,11:31,1:24,02:50 How to Find and Trade Intraday Reversal Times
Nifty Sep Futures Open Interest Volume stood at 1.10 lakh cr , witnessing a liquidation of 18 Lakh contracts. Additionally, the increase in Cost of Carry implies that there was closure of SHORT positions today.
Nifty Advance Decline Ratio at 36:14 and Nifty Rollover Cost is @25178 closed below it.
Nifty Gann Monthly Trade level :25343 close below it.
Nifty closed Below its 100 SMA@24274 Trend is Buy on Dips till above 24270
Nifty options chain shows that the maximum pain point is at 24300 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 3228 crores, while Domestic Institutional Investors (DII) bought 1400 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.
Trading needs Concentration and preparation. If you do it spontaneously, you will likely to be unsuccessful.
For Positional Traders, The Nifty Futures’ Trend Change Level is At 24457. 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 24357, Which Acts As An Intraday Trend Change Level.
Nifty Intraday Trading Levels
Buy Above 24375 Tgt 24412, 24456 and 24500 ( Nifty Spot Levels)
Sell Below 24312 Tgt 24285, 24244 and 24200 ( 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.