DMK Pullout ? FII data Analysis for trade in Nifty and Bank Nifty Future

By | March 19, 2013

FII

1. FIIs sold 28022  Contracts of Index Future (NSE Nifty Futures and Bank Nifty Futures combined),worth 806 cores with net Open Interest increasing by 13832 contracts. As discussed Nifty broke Symmetrical triangle and we saw big fall. Read more on How to trade Symmetrical Triangle pattern

2. As CNX Nifty Future was down by 99 points, with Open Interest in Index Futures increasing by 13832 so FII continued adding  shorts  in today’s session.Yesterday we forewarned our readers FII are approaching Credit Policy with negative view and market rewarded traders who followed the advise. 🙂 . Traders who are going extremly short in market thinking government will fall look at table below UPA-II is still stable government looking at mathematics of numbers.

Math_Corrected_600

3. NS closed at 5746 after  making high of 5864 and low of 5724, RBI decreased the Repo Rate by 25 BPS but DMK pulling out of the UPA regime knocked off nifty 100 points down in matter of few minutes, But we believe market know news well in advance we have enough evidence for that, Let me recount them

  •  Yesterday we pointed Nifty has  formed NR7 day signaling range expansion.
  • Nifty is trading below both its short and long term moving averages signifying the weak technical structure of Nifty.
  • As discussed in Weekly analysis, Symmetrical triangle has broken on downside and we need to see follow up move in tomorrow’s session which came today
  • Traders following Trend Deciding level which was 5860 for today’s session, Nifty made high of 5869 and collapsed.
  • Traders following Trend Changer level which was 5851 for today’s session, Nifty made high of 5869 and collapsed.

Why i am highlighting this point is to make traders aware that, if you understand price action, you do not need any insider news to trade. Only Discipline and Trust in trading system is required.

4. Resistance for Nifty has come up to 5778 and 5800 which needs to be watched closely ,Support now exists at 5724and 5692.

5. Nifty Future March Open Interest Volume is at 1.60 cores with addition of  7.3  lakh in Open Interest with fall in Cost of Carry of Nifty Future  to showing traders have added  short positions in Index Futures.

6. Total Future & Option trading volume at 2.73 lakh Cores with total contract traded 4 lakh Highest in 2013, PCR (Put to Call Ratio) at 1.16 and VIX at 16.71

7. 6000 Nifty CE  is having highest OI at 99.8 Lakh with addition of  13.9 Lakhs, 5900 CE added 17.8 lakhs having OI of  81 lakhs ,5800 CE also added 24.5 lakhs in OI.5500-6200 Call Options added  huge 63.8 lakhs in OI.  Option table has tunred to excessive bearish which such a huge OI additions in Calls.

8. 5700 Put Option is having highest  Open Interest of  85 lakhs with liquidation of  22.8 lakhs in OI  5700 is wall of Support is under danger , 5800 PE  liquidated 22.8  lakhs with  OI  at 66.7 lakhs and 5900 PE liquidated  14.3  lakhs in OI with net OI at 34.4  lakhs suggesting smart money liquidating position, 5500-5600 PE both combined liquidated 25.7 lakh in OI so overall profit booking in puts were seen and support of 5700 is in danger. 5500-6200 Put Options liquidated huge 94.8 lakhs in OI.

9. FIIs bought in Equity in tune of 63 cores,and DII bought 71 cores in cash segment,INR closed at 54.40 Live INR Chart for market hours and currency traders

10. Nifty Futures Trend Deciding level is 5757(For Intraday Traders), Trend Changer at 5847 NF(For Positional Traders). (Above this Level Bulls will rule Nifty/Below this levels Bears have upper hand). Bank Nifty Future Trend Changer Level 11873.As per trend changer level shorts were created.Traders trading on these levels in both Nifty Futures and Bank Nifty Futures would have made good profit.

Buy above 5780 Tgt 5800, 5837,5852

Sell below 5724 Tgt 5695,5680 and 5658 (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/

We do discussion is Live market to update Nifty levels If you are interested you can LIKE the page to get Real Time Updates.

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One thought on “DMK Pullout ? FII data Analysis for trade in Nifty and Bank Nifty Future

  1. Ashis Maji

    “if
    you understand price action, you
    do not need any insider news to
    trade. Only Discipline and Trust in
    trading system is required”.

    I like your above comment from my heart.

    Similarly I am also tell my clients ” if you know the trend and under current of the market or trust your trading system no stop loss required for positional trading”

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