FII Activity: Bullish Sentiment in Nifty Index Futures
Foreign Institutional Investors (FIIs) displayed a bullish approach in the Nifty Index Futures market by buying 7,017 contracts worth ₹431 crores. This resulted in a decrease of 939 contracts in the net open interest.
FIIs added 9,085 long contracts and covered 5,739 short contracts, reflecting a preference for building long positions and reducing their short exposure in Nifty Futures. With a net FII long-short ratio of 0.48, it is evident that FIIs strategically utilized the market rise to enter long positions while exiting shorts.
On the other hand, Clients covered 4,138 long contracts and added 16,377 short contracts, indicating a shift toward short-side positioning.
Current Positioning in Index Futures:
- FIIs: Holding 38% long and 62% short positions.
- Clients: Holding 61% long and 39% short positions.
Analysis:
This data highlights a bullish sentiment from FIIs, as they actively added long positions and reduced short positions, demonstrating confidence in the market’s upward momentum. Meanwhile, clients appear more cautious, reducing their long positions while increasing their short-side exposure.
Traders should stay vigilant as these shifts in positioning could significantly influence market trends in the coming sessions.
As discussed in our previous analysis, we have witnessed a rally in Nifty. Tomorrow marks a confluence of Gann dates, as both the Gann Anniversary Date and the Gann Emblem Date coincide, creating a critical setup ahead of the RBI policy announcement on 6th December.
Key Levels to Watch:
- Bulls: Bulls would aim to hold the 24,201-24,270 range during any small dips, which serves as a crucial support zone. A sustained hold here could drive a rally toward 24,600-24,700, which is a significant supply zone.
- Bears: Bears will gain momentum if the price breaks below 24,200, signaling potential downside pressure.
Traders should monitor these levels closely and watch for the impact of the Gann dates on market movements, as they could set the tone ahead of the RBI policy.
Conquering Fear in Trading: Overcoming Emotional Traps to Build a Successful Trading Career
Nifty formed a perfect Doji on an important Gann Anniversary Date, as highlighted in the video below. Doji patterns on Astro or Gann dates are often among the most profitable trade setups, as they offer small stop-losses and excellent risk-to-reward opportunities.
Key Levels to Watch:
- For Bulls: The 24,366-24,389 range must be held during any dips. If this support level is defended, the rally could extend toward the 24,700-24,779 range.
- For Bears: A close below 24,270 could trigger a quick fall toward 24,144/24,040.
Key Reminder for Traders:
- Important Astro Dates: Several significant astrological dates coincide with 6th December, the day of the RBI policy announcement, which could result in heightened volatility.
- Hedge Overnight Positions: To manage risks, avoid carrying overnight positions on 6th December without proper hedging.
Nifty Trade Plan for Positional Trade ,Bulls will get active above 24473 for a move towards 24551/24628/24700. Bears will get active below 24357 for a move towards 24241/24163.
Traders may watch out for potential intraday reversals at 09:39,10:39,11:19,12:38,01:26,02:19 How to Find and Trade Intraday Reversal Times
Nifty December Futures Open Interest Volume stood at 1.15 lakh cr , witnessing liquidation of 0.84 Lakh contracts. Additionally, the increase in Cost of Carry implies that there was liquidation of LONG positions today.
Nifty Advance Decline Ratio at 22:28 and Nifty Rollover Cost is @25178 closed below it.
Nifty Gann Monthly Trade level :24201 close above it.
Nifty has closed below its 20 SMA @ 24100 Trend is Buy on Dips till holding 24100.
Nifty options chain shows that the maximum pain point is at 24400 and the put-call ratio (PCR) is at 0.92Typically, 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 24200-24600 levels.
In the cash segment, Foreign Institutional Investors (FII) bought 1797 crores, while Domestic Institutional Investors (DII) sold 900 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 23218-23889-24600-25310 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.
Don’t trade when you’re tired or emotional. (angry and upset) Trading is a complex activity, and it’s important to be mentally sharp when you’re trading. If you’re tired or emotional, it’s best to take a break from trading.
For Positional Traders, The Nifty Futures’ Trend Change Level is At 24380. 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 24568, Which Acts As An Intraday Trend Change Level.
Nifty Expiry Range
Upper End of Expiry : 24652
Lower End of Expiry : 24281
Nifty Intraday Trading Levels
Buy Above 24484 Tgt 24525, 24575 and 24630 ( Nifty Spot Levels)
Sell Below 24444 Tgt 24404, 24364 and 24323 (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.