FII Activity: Bearish Sentiment in Nifty Index Futures
Foreign Institutional Investors (FIIs) displayed a bearish approach in the Nifty Index Futures market by shorting 4,266 contracts worth ₹262 crores. This resulted in an increase of 2,406 contracts in the net open interest.
FIIs covered 415 long contracts and covered 2,162 short contracts, reflecting a preference for reducing both long and short positions in Nifty Futures. With a net FII long-short ratio of 0.55, it is evident that FIIs strategically utilized the market fall to exit long positions while reducing their short exposure.
On the other hand, Clients added 10,966 long contracts and covered 673 short contracts, signaling a more optimistic outlook.
Current Positioning in Index Futures:
- FIIs: Holding 45% long and 55% short positions.
- Clients: Holding 60% long and 40% short positions.
Analysis:
FIIs have maintained a cautious stance with a slight bearish tilt, as they continue to hold a higher percentage of shorts. Meanwhile, Clients appear more optimistic, adding to their long positions and reducing shorts.
Traders should monitor these positioning shifts closely, as they could indicate the direction of the next market move.
One of the Most Insanely Volatile Days in Market History
NIFTY saw unbelievable swings:
- -244
- +562
- -362
- +265Nifty has been rallying, and we’ve been on the right side of the trade, capitalizing on the trend based on our Astro and Gann cycles, as explained in the videos below.Tomorrow brings important astrological events, including:
- Mercury at Inferior Conjunction
- Mercury at Perihelion
- Sun Conjunct Mercury
- Mars Ingress
These alignments suggest that we are in for another volatile session.
Key Levels to Watch:
- Bulls need to defend the 24,600 level. If this support holds, the rally may continue.
- If 24,600 breaks, bears could gain control, especially after the RBI policy announcement, leading to potential selling pressure.
Caution:
This could play out as a classic case of “Buy the Rumor, Sell the News”, so traders should prepare for heightened volatility and manage positions carefully.
Why Stock Traders Abandon Their Trading Plans and How to Stay Disciplined
Nifty formed a perfect Doji, aligning with the confluence of Gann and Astro dates. The impact of Mars Retrograde was evident in the markets today, with Gold and Silver experiencing significant moves. With a Double Ingress also in effect, Nifty is poised for a 400-500 point move in the coming 3-4 sessions.
Key Levels to Watch:
- For Bulls: A breakout above 24,770 could propel the index toward 25,147.
- For Bears: A break below 24,555 could trigger a fall toward 24,393/24,016.
Traders should stay alert and prepare for heightened volatility as Nifty approaches these critical levels.
Nifty Trade Plan for Positional Trade ,Bulls will get active above 24685 for a move towards 24763/24841/24919. Bears will get active below 24607 for a move towards 24529/24451/24373.
Traders may watch out for potential intraday reversals at 09:15,10:10,12:24,01:17,02:26 How to Find and Trade Intraday Reversal Times
Nifty December Futures Open Interest Volume stood at 1.12 lakh cr , witnessing liquidation of 0.77 Lakh contracts. Additionally, the increase in Cost of Carry implies that there was liquidation of SHORT positions today.
Nifty Advance Decline Ratio at 21:29 and Nifty Rollover Cost is @25178 closed below it.
Nifty Gann Monthly Trade level :24406 close above it.
Nifty has closed above its 20 SMA @ 24556 Trend is Buy on Dips till holding 24500.
Nifty options chain shows that the maximum pain point is at 24600 and the put-call ratio (PCR) is at 0.92 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 24800 strike, followed by 25000 strikes. On the put side, the highest OI is at the 24500 strike, followed by 24400 strikes. This suggests that the market participants are expecting Nifty 50 to remain range between 24500-25000 levels.
In the cash segment, Foreign Institutional Investors (FII) bought 724 crores, while Domestic Institutional Investors (DII) sold 1648 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.
Those who choose to win seek successful role models, develop a road map for success, and accept setbacks as valuable teachers. They put a plan into action, learn from their results, and make adjustments until they achieve victory
For Positional Traders, The Nifty Futures’ Trend Change Level is At 24512. 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 24715, Which Acts As An Intraday Trend Change Level.
Nifty Intraday Trading Levels
Buy Above 24648 Tgt 24689, 24729 and 24777 ( Nifty Spot Levels)
Sell Below 24595 Tgt 24565, 24512 and 24466 (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.