FIIs Add Fresh Shorts in Bank Nifty Futures – May 8, 2024
On May 8, Foreign Institutional Investors (FIIs) continued to reflect a bearish outlook in the Bank Nifty Index Futures segment by shorting 2,245 contracts worth ₹365 crore. This move was accompanied by a net open interest (OI) increase of 1,125 contracts, clearly indicating fresh short positions being built.
FII Activity Snapshot (May 8):
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Contracts Shorted: 2,245
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Notional Value: ₹365 crore
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Net OI Change: +1,125 contracts
Interpretation:
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The increase in OI alongside fresh shorts confirms that FIIs are actively hedging or positioning for downside risk, possibly due to:
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Unresolved geopolitical tensions
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Elevated India VIX
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Influence from active astro triggers (Bayer Rule 2 & 14 still in effect)
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Trading Consistency & Discipline: Key to Long-Term Success
Bank Nifty is expected to open gap down in today’s session due to escalating geopolitical tensions between India and Pakistan. This scenario was cautioned in our previous video, particularly if key Gann levels were breached — and now the index is poised to open around the 53,400–53,500 support zone.
Pre-Market Levels & Strategy:
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Support Zone: 53,400–53,500
→ Bears may look to book profits in this region.
→ Bulls will aim to defend and build support near this zone. -
Resistance Zone for Weekly Close: 53,755–53,800
→ A close above this range would suggest bullish resilience heading into the new week.
Astro Alert: Mercury Sign Change – May 10
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Mercury will change signs on May 10, an event often linked to trend reversals and volatility spikes.
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Historically, this setup has resulted in gap openings and swing reversals, particularly around macro or geopolitical catalysts.
️ Risk Management Reminder:
Given the heightened uncertainty and Mercury ingress timing, traders are advised to:
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Avoid unhedged overnight positions
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Use protective puts or spreads
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Rely on intraday levels for confirmation
Final Word:
Today’s price action will be a key test for market sentiment. Holding above 53,400 could invite a relief bounce, while sustained weakness may confirm broader trend exhaustion post the April rally. Expect volatility to remain elevated.
https://youtu.be/eYx_q4ztAas
Bank Nifty Trade Plan for Positional Trade ,Bulls will get active above 54219 for a move towards 5466/55155. Bears will get active below 53755 for a move towards 53292/52831.
Traders may watch out for potential intraday reversals at 09:32,10:24,11:12,12:33,01:22,02:56 How to Find and Trade Intraday Reversal Times
Bank Nifty May Futures Open Interest Volume stood at 19 lakh, with liquidation of 0.01 lakh contracts. Additionally, the Increase in Cost of Carry implies that there was a closure of LONG positions today.
Bank Nifty Advance Decline Ratio at 05:07 and Bank Nifty Rollover Cost is @55480 closed above it.
Bank Nifty Gann Monthly Trade level :52348 closed above it.
Bank Nifty closed above 200 SMA @53839,Trend is Buy on Dips once above 54872
Traders who follow the musical octave trading path may find valuable insights in predicting Bank Nifty’s movements. According to this path, Bank Nifty may follow a path of 53548-55141-56734. This means that traders can take a position and potentially ride the move as Bank 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.
According to the Bank Nifty options chain, the call side has the highest open interest (OI) at the 55000 strike, followed by the 55500 strike. On the put side, the 54000 strike has the highest OI, followed by the 53800 strike.This indicates that market participants anticipate Bank Nifty to stay within the 53500-54500 range.
The Bank Nifty options chain shows that the maximum pain point is at 54400 and the put-call ratio (PCR) is at 0.80 Typically, when the PCR open interest ranges between 0.90 and 1.05, the market tends to remain range-bound. PCR is on extreme end suggesting we can see sharp reversal .
Trading is not about being right—it’s about managing risk. Doubling down is the arrogance of certainty meeting the brutality of randomness. The market doesn’t care about your conviction; it only respects survival.
For Positional Traders, The Bank Nifty Futures’ Trend Change Level is At 55091. 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 54597, Which Acts As An Intraday Trend Change Level.
BANK Nifty Intraday Trading Levels
Buy Above 54000 Tgt 54125 , 54300 and 54444 (BANK Nifty Spot Levels)
Sell Below 53800 Tgt 53666, 53444 and 53222 (BANK 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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