Nifty and Bank Nifty trading strategy

By | December 13, 2012

FII

1. FIIs  sold 11822 Contracts of Index Future (NSE Nifty Futures and Bank Nifty Futures combined),worth 349.83 cores with net Open Interest increasing by 8250 contracts.

2. As CNX Nifty Future was down by 51 points with Open Interest in Index Futures increasing by 8250, so FIIs have created fresh shorts  in  Nifty and Bank Nifty Futures.WPI data will come tommrow at 11 AM. Expectation is 7.6

3. NS closed at 5852 after making high of 5907 and low of 5841,Today Nifty has formed a double bottom which is a bullish formation if 5841 is not broken for next 3 days. Readers if they remember at 5548 also we alerted about double bottom and we are up almost 400 points from 5548. So Double bottom is a strong possibility of reversal. Tommorow we have weekly closing and Bulls will try to close Nifty above 5900 for further momentum to continue.

4. Resistance for Nifty has come up to 5868 and 5900 which needs to be watched closely ,Support now exists at 5839 and 5825.Trend is Buy on Dips till 5825 is not broken on closing basis.

5. Nifty  Future December  Open Interest Volume is at 2.15 cores with addition  of  3.8  lakh in Open Interest, Cost of Carry of NF reduced  to 12.11.Shorts addition seen in NF.

6. Total Future & Option trading  volume was  at 1.35  lakh  Cores  with total contract traded   2.12 lakh,  PCR (Put to Call Ratio) at 0.87 and VIX  at  14.71.Todays fall was not backed by Volumes in cash market.

7.  6000 Call Option  is having highest Open Interest of 1.15 Cores  with addition of 5.0 lakhs in Open Interest, 5900 Call also added 5.5 lakhs in OI,6100 Call Option added 3.9 lakhs in OI with premium coming down 6 from high of rs 22 in 3 days so shorts in 6100 CE . 5500-6100 Call Options added 14.5 lakhs in OI.

8. 5800 Put Option is having  Open Interest of 82 lakhs with addition of 0.7 lakhs in OI so firm base is set up at 5800 and 5900 Put Option added 0.56 lakhs with OI at 56 Lakhs so even though Nifty closed below 5900 for 3 day Bulls have still not liquidated shorts in 5900 Call suggesting we can see a good bounce either tommrow .5500-6100 Put Options liquidated 1.8 lakhs in OI.

9. FIIs  buying in Equity in tune of  1256.57 cores and DII  sold 665.67 cores in cash segment.Indian Rupee ,FII has sold 636 cores of Stock futures and 2976 in 9 trading sessions.INR closed  at  54.64 Live INR rate  @ http://inrliverate.blogspot.in/).

10. Nifty Futures Trend Deciding level is 5902(For Intraday Traders), Trend Changer at 5927 NF(For Positional Traders). (Above this Level Bulls will rule Nifty/Below this levels Bears have upper hand).  Bank Nifty Future Trend Changer Level 12349.

Buy above 5869 Tgt 5892,5907,5925

Sell below 5838 Tgt 5825,5800 and 5787(Nifty Spot Levels)

Disclaimer: These are my personal views and trade taken on these observation should be traded with strict Sl

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One thought on “Nifty and Bank Nifty trading strategy

  1. KSBR PRASAD

    Thank you Sir for providing your fantastic technical analysis.

    Yours sincerely,

    KSBR PRASAD

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