FII Activity: Bullish Sentiment in Nifty Index Futures
Foreign Institutional Investors (FIIs) displayed a bullish approach in the Nifty Index Futures market by buying 3,352 contracts worth ₹208 crores. This resulted in an increase of 666 contracts in the net open interest.
FIIs added 444 long contracts and added 1,460 short contracts, reflecting a preference for building positions on both the long and short sides in Nifty Futures. With a net FII long-short ratio of 0.78, it is evident that FIIs strategically utilized the market rise to enter long positions while simultaneously increasing their short exposure.
On the other hand, Clients added 2,787 long contracts and 1,920 short contracts, indicating positioning in both directions as part of their trading strategy.
Current Positioning in Index Futures:
- FIIs: Holding 43% long and 57% short positions.
- Clients: Holding 60% long and 40% short positions.
Analysis:
FIIs continue to hold a bearish tilt with more shorts than longs, despite adding to their long positions. Clients, however, maintain a relatively optimistic outlook with a higher percentage of longs in their positions.
Traders should monitor these positioning shifts closely as they could influence market dynamics in the coming sessions.
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.
Tips to Help You “Visualize” Your Way to Winning Trades
Nifty has formed an NR21 pattern, with today’s range being the narrowest in the last 21 trading days. Tomorrow, with Venus Opposition Mars, we could witness a volatile expiry, as Mars, known as the planet of energy, could fuel sharp market moves.
Key Levels to Watch:
- For Bulls: A move above 24,700 is needed, with confirmation of a range breakout above 24,770.
- For Bears: A close below 24,575 will signal weakness, with confirmation of further downside once the price closes below 24,500.
Traders’ Note:
Be prepared for increased volatility during expiry, and trade cautiously as the astrological alignment could lead to sharp moves in either direction.
Nifty Trade Plan for Positional Trade ,Bulls will get active above 24700 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 09:54,11:37,12:11,01:02,02:43 How to Find and Trade Intraday Reversal Times
Nifty December Futures Open Interest Volume stood at 1.14 lakh cr , witnessing liquidation of 0.85 Lakh contracts. Additionally, the increase in Cost of Carry implies that there was liquidation of SHORT positions today.
Nifty Advance Decline Ratio at 26:23 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 @ 24497 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 24700 strike, followed by 24800 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 24500-24800 levels.
In the cash segment, Foreign Institutional Investors (FII) sold 1012 crores, while Domestic Institutional Investors (DII) bought 2007 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 24551 . 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 24740, Which Acts As An Intraday Trend Change Level.
Nifty Expiry Range
Upper End of Expiry : 24812
Lower End of Expiry : 24469
Nifty Intraday Trading Levels
Buy Above 24666 Tgt 24699, 24729 and 24777 ( Nifty Spot Levels)
Sell Below 24610 Tgt 24575, 24525 and 24484 (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.