Nifty rallies on back of rupee recovery, nifty technical analysis

By | August 23, 2013

FII

  • FIIs sold 24369 contracts of Index Future (Entered fresh shorts in 7061 contracts and booked profit in  17308 Longs) worth 662 cores with net Open Interest decreasing by 10247 contracts. So as per data analysis, FII’s are still entering in fresh shorts  in NF and BNF,The rally we saw today was backed by short covering and fresh shorts were entered at higher levels. So from past 2 days nifty is rallying and FII’s are entering shorts so probably we can see one more downside near expiry.Do remember FII’s are always hedged so blindly do not short the market thinking FII’s are shorting, Be with your trading system.Like Today we clearly mentioned on our Facebook page any move above 5426 will give short term target of 5475 which eventually got achieved today,So its always important to follow the system.
  • Nifty continue with its relief rally, but with range contraction as discussed in  yesterday analysis ,As per classical technical analysis Support becomes resistance Nifty is also working on same line as the range of 5477-87 was strong support for nifty and same is acting as resistance now. Short term downtrend gets over only above 5504.

nifty daily

  • Nifty Future Aug Open Interest Volume is at 2.32 cores with liquidation of 2.6 lakhs in Open Interest, so of 34 lakh which got added 21 August only 8 lakh got unwounded in past 2 days suggesting traders are still short in market, any trade above 5504  will further fuel the short covering rally.
  • Total Future & Option trading volume at  1.99  lakh with total contract traded at 3.6 lakh , PCR (Put to Call Ratio) at 0.96. VIX closed at 25.75 did correct today as again we discussed yesterday.
  • 5600 Nifty CE  is having highest OI at 84.1 lakhs with addition of 15.1 lakhs in OI. 5500 CE added 8.4 lakh in OI will be resistance in short term.As per Option data OI analysis FII entered long in 55.7 K call options mostly in 5500/5600 CE and 4.9K contracts of profit booking in written calls. 5400-5700 CE added 6.5 lakh in OI.
  • 5300 PE OI at 77.3 lakh remain the highest OI, remains the firm support for time being. 5400 PE added  21.5 lakh in OI and remian a short term support. As per Options Data analysis, FII has booked profit in 27.5 K ITM PE and also entered 11.3 K in  Put writing , so basically FII’s are seeing a reduction in VIX and shorting OTM PE’s as premium will come down fast as we are nearing expiry .5300-5700 PE added 19.8 lakh  in OI.

OI

  • FIIs sold in Equity in tune of 148 cores ,and DII bought 755  cores in cash segment ,INR closed at 63.35 biggest gain in a year 🙂
  • Nifty Futures Trend Deciding level is 5426(For Intraday Traders).Nifty Trend Changer Level 5646 and Bank Nifty Trend Changer level 9898 .

 

Buy above 5478 Tgt  5504,5540 and 5565 (Nifty Spot Levels)

Sell below 5440 Tgt 5410,5375 and 5343(Nifty Spot Levels)

 

Live Nifty A/D charts  Click on the Link

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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