S&P CNX Nifty Trading Strategy for 19 Feb

By | February 18, 2013

FII

1. FIIs sold 13959  Contracts of Index Future (NSE Nifty Futures and Bank Nifty Futures combined),worth 416 cores with net Open Interest increasing by 13443 contracts. When to Exit a Trade

2. As CNX Nifty Future was up by 11 points  with Open Interest in Index Futures increasing by 13443 so FII have continued adding shorts in Nifty and Bank Nifty future. Today volumes in Nifty Future were at 5 year low.

3. NS closed at 5898 after  making high of 5911 and low of 5878.Nifty again was unable to close above 5900 and below 5880. Still trading in a tight range but VIX has risen 6% today, suggesting a good move is offing. Nifty from past 2 days have been forming Higher High and Higher Low formation on daily chart which in term of classical technical analysis is a Bullish sign.Range of 5815-5830 is important support zone and bounce back should come as discussed in Weekly Analysis

 

 

4. Resistance for Nifty has come up to 5913 and 5928  which needs to be watched closely ,Support now exists at 5854 and 5878.Trend is Buy on Dips till 5880 is not broken on closing basis.

5. Nifty Future Feb Open Interest Volume is at 1.54 cores with addition of  6.1 lakh in Open Interest shorts got liquidated in system, Cost of Carry of Nifty Future increased to 5.13  showing shorts liquidation and long additioninto the system.

6. Total Future & Option trading volume at 0.84 lakh Cores with total contract traded  at  1.05 lakh lowest in past 5 years , PCR (Put to Call Ratio) at 0.82  and VIX at 16.29,finally broke above 15.6 range

7. 6000 Call Option is having highest Open Interest of 85.58  lakhs with addition of  12.1 lakhs in Open Interest premium at Rs 21 huge short again got added , 6100 Nifty CE  is having second highest OI at 85.5 lakh  liquidation  of  3 lakhs in OI as premium has come down to rs 6 smart money adding shorts for peanuts ,5900 CE also added  4.7 lakhs in OI . Bears are continuing to build wall of resistance at 6000 CE  .5700-6300 Call Options added 21.9 lakhs in OI.

8. 5900 Put Option is having highest  Open Interest of  66.7  lakhs with liquidation of 2.7 lakhs in OI  , 6000 PE writers again liquidated on to there positions as OI change was 1.3lakhs,5800 PE added neglible and is having second highest OI  at 65.9 lakhs  . 5700 PE  again liquidated 4.5  lakhs with Option premium at Rs 5 ,so this time smart money covering  shorting  in 5700 PE  .5700-6300 Put Options liquidated 9.7  lakhs in OI.

9. FIIs buying in Equity in tune of 142 cores, lowest in Feb series  and DII sold 110 cores in cash segment,INR closed at 54.25 lowest in 2 months

10. Nifty Futures Trend Deciding level is 5925(For Intraday Traders), Trend Changer at 5962 NF(For Positional Traders). (Above this Level Bulls will rule Nifty/Below this levels Bears have upper hand). Bank Nifty Future Trend Changer Level 12494.

Buy above 5900 Tgt 5912,5928 and 5940

Sell below 5879 Tgt 5863,5854,5834(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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5 thoughts on “S&P CNX Nifty Trading Strategy for 19 Feb

  1. Bramesh Post author

    Dear Audheshji,

    Things which might not make sense to you, Can make sense to other people. If i write anything its after lot of thought process, I never right anything without logic. We can see in today move of Nifty the HH showing its effect. Thats my way of reading and am quiet happy with it. Regarding your prediction thing of 90%, if you have such thought process am sorry to say trading is not your ball game. If a person is able to get 50-60% accuracy thats more than enough. Above it on “consistent” basis is not possible.

    You can go to any nationalized banks they give a minimum fixed returns but if you expect the same from trading in stock market, Its not possible !!

    Rgds,
    Bramesh

  2. audhesh singh

    Is there any scheme for guaranteed return per month (minimum) on capital employed.If any then I would like to invest with your firm.

  3. audhesh singh

    2 day HH/HL on daily chart does make any sense?It is confusing.I have checked on daily chart, many times it is an excellent opportunity to sell when market is on down trend.Bramesh,you should first give very clear trend with stop loss.One thing is to keep in mind that 90% of time your trend prediction should work then only we traders can get some benefit and make money.

  4. Bramesh Post author

    Hi Vips,

    As per OI analysis, FII today also have initiated shorts.

  5. Vips

    Bhai, A bit correction : In the first line, you mentioned that FII open interst increasing and nifty future was up by 11 points, doesnt it means that Fii have booked shorts and initiated longs (though in small quantity)

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