Foreign Institutional Investors (FIIs) displayed a bearish outlook in the Nifty Index Futures market, actively shorting 5753 contracts worth ₹734 crores. This action resulted in a significant increase of 3641 contracts in the net open interest.
Breaking down their activity:
- FIIs added 526 long contracts and simultaneously increased 10507 short contracts.
- While this shows an effort to expand both long and short exposures, the net FII long-short ratio remains at 0.18, signaling a predominantly bearish stance.
Client Behavior:
- Clients added 17790 long contracts and covered 7785 short contracts, indicating a tilt towards building Long positions.
Current Positioning in Index Futures:
- FIIs: Holding 16 % long and 84% short positions.
- Clients: Holding 72 % long and 28 % short positions.
This data highlights the contrasting approaches of FIIs and Clients, with FIIs maintaining a stronger bearish bias.
Nifty made an inside bar today trading with the Mercury Ingress range and also held on to its gann angle support as shown in below chart Historically, we have observed that when the price held on to its Astro date low, it often leads to a strong counter-trend rally.
Key Levels to Watch for Tomorrow’s Weekly Close:
- For Bulls: A close above the 23729-23743 range will be crucial to build momentum for a counter-trend rally.
- For Bears: A close below 23496 will confirm continued bearish strength.
Traders should remain cautious and monitor these levels closely, as the weekly close will set the tone for the upcoming sessions.
TCS results are mixed While growth is moderate Margins held up Order booking was strong Commentary is decent and special rs 76 divident.
The Mental Side: The Key to Success in Stock Market Trading
Nifty continued its downfall, breaking the Mercury Ingress low of 23,496 and closing below it. Adding to the pressure, the 2024 US Job Report surpassed expectations on hiring, raising uncertainty about the path of interest rates this year.
Additionally, with the North Node (Rahu) changing signs, a long-term trend change could be on the horizon. This astrological shift often signals significant market moves.
Key Levels to Watch for Monday:
- Support Zone: If Nifty holds the range of 23,189-23,225 during the first 15 minutes after a potential gap-down opening, there is a possibility of a reversal.
- For a Complete Reversal: The price must close above 23,500 to confirm a change in the trend.
Traders’ Note:
Monitor the first 15 minutes closely, as holding the support zone could set the stage for a recovery. If support breaks, further downside is possible. Stay cautious and manage positions carefully.
Nifty Trade Plan for Positional Trade ,Bulls will get active above 23579 for a move towards 23666/23729/23779/23864 . Bears will get active below 23496 for a move towards 23424/23343.
Traders may watch out for potential intraday reversals at 09:46,11:32,12:40,01:59,02:56 How to Find and Trade Intraday Reversal Times
Nifty December Futures Open Interest Volume stood at 1.35 lakh cr , witnessing liqudiation of 0.97 Lakh contracts. Additionally, the increase in Cost of Carry implies that there was closeure of SHORT positions today.
Nifty Advance Decline Ratio at 14:36 and Nifty Rollover Cost is @23879 closed below it.
Nifty Gann Monthly Trade level :23721 closed below it.
Nifty has closed below its 200 SMA @ 23923 Trend has changed to Sell on Rise till below 23700
Nifty options chain shows that the maximum pain point is at 23400 and the put-call ratio (PCR) is at 0.66.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 23500 strike, followed by 23700 strikes. On the put side, the highest OI is at the 23200 strike, followed by 23100 strikes. This suggests that the market participants are expecting Nifty 50 to remain range between 23100-23500 levels.
Retail Activity in Options Market: Bullish Bias Indicated
According to today’s data, retail investors bought 895 K Call Option contracts and shorted 854 K Call Option contracts. Additionally, they bought 260 K Put Option contracts and covered 305 KPut Option contracts, indicating a bullish bias in the market.
FII Activity in Options Market: Bearish Bias Indicated
Foreign Institutional Investors (FIIs) covered 172 K Call Option contracts and shorted 183 K Call Option contracts. On the Put side, FIIs added 244 K Put Option contracts and shorted 220 K Put Option contracts, suggesting a shift towards a bearish bias.
In the cash segment, Foreign Institutional Investors (FII) sold 2254 crores, while Domestic Institutional Investors (DII) bought 3961 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 23408-24105-24801 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.
Traders do not fail in the trading system – they fail in implementing it, they fail in themselves!
For Positional Traders, The Nifty Futures’ Trend Change Level is At 23849. 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 23556, Which Acts As An Intraday Trend Change Level.
Nifty Intraday Trading Levels
Buy Above 23323 Tgt 23385, 23424 and 23484 ( Nifty Spot Levels)
Sell Below 23200 Tgt 23166, 23125 and 23100 (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.
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