S&P CNX Nifty and Bank Nifty Trading Strategy for 22 Feb

By | February 21, 2013

FII

1. FIIs sold 16440  Contracts of Index Future (NSE Nifty Futures and Bank Nifty Futures combined),worth 486 cores with net Open Interest decreasing by 7418 contracts. Are you trading on Luck or trading Skills ?

2. As CNX Nifty Future was down by 110 points Highest in past 7 months  with Open Interest in Index Futures decreasing by 7418 so FII again did short covering today in Nifty Futures as we discussed yesterday FII carrying shorts in Bank Nifty today Bank Nifty was down 350 points 🙂 .

3. NS closed at 5852 after  making high of 5921 and low of 5844.As discussed yesterday Nifty has formed NR7 pattern today so tommrow expect some fireworks if 5971 is crossed and sustained on hourly basis,else will be back to sub 5900 levels. Nifty obliged us with gap down opening and continued with trend and ended Sub 5900 levels. Tomorrow is weekly closing and any closed below 5884 will further put pressure on nifty. As discussed in weekly analysis 5815-30 range is strong support so better to lighten up shorts in the range.

 

 

4. Resistance for Nifty has come up to 5973 and 5901  which needs to be watched closely ,Support now exists at 5817 and 5800.Trend is Buy on Dips till 5880  is not broken on closing basis, Stops of longs got triggered today.

5. Nifty Future Feb Open Interest Volume is at 1.61 cores with addition of  1.1 lakh in Open Interest shorts addition in system, Cost of Carry of Nifty Future went to -1.78   showing long liquidation and shorts addition into the system. Cash market volumes were again highest on down day.

6. Total Future & Option trading volume at 1.64 lakh Cores with total contract traded highest in 2 months 2.53 lakh , PCR (Put to Call Ratio) at 0.95 and VIX at 16.94. VIX sustaining 15.6 also gave us hint of impending fall which came today.

7. 6000 Nifty CE  is having highest OI at 1.03 Core with addition of 27.9 Lakhs, 6200 CE liquidated  14.2 lakhs in OI so speculative money exited 6200 CE which entered yesterday. 5900 Call Option added 20 lakhs in Open Interest of 59.4  lakhs premium at Rs 35 Huge shorts added ,  Bears hold their forte at  6000 CE and now targeting 5900.5700-6300 Call Options added 48.3  lakhs in OI. 

8. 5800 Put Option is having highest  Open Interest of  75.8 lakhs with addition  of 7.6  lakhs in OI  as discussed yesterday buying occurred in 5800 PE and today buyers were rewarded , 5900 PE liquidated huge 16.7 lakhs in OI and almost nil addition in 5700 PE suggests Bears will not be able to break 5800 tommrow and bounce back should come near 5800 odd levels.  .5700-6300 Put Options liquidated 18  lakhs in OI.

9. FIIs bought in Equity in tune of 1213 cores,and DII sold 228 ores in cash segment,INR closed at 54.48.

10. Nifty Futures Trend Deciding level is 5874(For Intraday Traders), Trend Changer at 5956 NF(For Positional Traders). (Above this Level Bulls will rule Nifty/Below this levels Bears have upper hand). Bank Nifty Future Trend Changer Level 12466. Positional traders following trend changer level would have handsomely rewarded today.

Buy above 5873 Tgt 5886,5900 and 5921

Sell below 5840 Tgt 5826,5815,5800(Nifty Spot Levels)

Traders who use Pivot and Camarilla can use the following 2 sites for Hourly values and EOD values

 

http://camarillapivotpoints.blogspot.com/
http://niftystockpivot.blogspot.in/

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4 thoughts on “S&P CNX Nifty and Bank Nifty Trading Strategy for 22 Feb

  1. Bramesh Post author

    Dear Sameer,

    Index Futures comprises of bank Nifty, Nifty future. Also whenever you analysis OI data you also need to see in sync with open interest.

    Rgds,
    Bramesh

  2. sameer

    sirji, in point 1 and 2, you said FII sold futures and also did short covering? How is it possible?

    To cover the shorts, one has to buy it, not sell. please clarify

  3. rahul

    In 3 and 4 you have write 9 instead of 8
    i.e 5800 not 5900
    5871 not 5971

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