Nifty Trading Strategy after better than expected IIP and Inflation data.

By | September 12, 2013

FII

  • FIIs sold 12341 contracts of Index Future (Bought 5507 long contract and  17848 shorts were added) worth 344 cores with net Open Interest increasing by 23355 contracts. SO FII’s again added shorts in Index Futures.Yesterday we have cautioned readers about FII adding shorts today we got the trailer.
  • Nifty corrected after rally for 5 day but was again able to protect its 200 DMA. IIP grows 2.6 per cent in July after two months of contraction and Inflation also cooled of to 9.52%.  both better than market expectation. Nifty till its holds 200 DMA will be a bullish signal. Tomorrow we have the weekly closing bears will try to push index below 5825 and Bulls would like to have a weekly closing above 5900 odd levels. Interesting day ahead !! Again i would reiterate trading is done on levels not on news or data. Never be biased when trading it will keep you peace with yourself.

nifty daily

  • Nifty Future Sep Open Interest Volume is at 1.89 cores with liquidation of 1.7 lakhs in Open Interest, so longs getting out of system and no fresh entered.
  • Total Future & Option trading volume at  1.31 lakh with total contract traded at 3 lakh Cash volume is also higher from past 2 days suggesting delivery based buying ,PCR (Put to Call Ratio) at 1.08. VIX is still trading around 30 which again should be looked as a cautious sign.
  • 6000 Nifty CE  is having highest OI at 44.6 lakhs with addition of 1.7 lakhs in OI will be short term resistance. 5500-5800 CE liquidated 3.6 lakh in OI suggesting bulls are still in control of market.As per FII analysis 4 K long were exited in Calls, 25.2 K contract were written. 5500-6000 CE liquidated 3.4 lakh in OI.Profit booking in calls has started and shorting of Calls has increased.
  •  5600 PE has the highest OI of 52 lakh remains the short term support.5900 PE again saw the follow up buying added 4.7 lakhs in OI. As per FII data added 36.4 K contract of PE and wrote 32.9 K contract FII options data analysis shows bias coming from bullish to neutral .5500-6000 PE added  huge 6.5 lakh in OI.

 

Buy above 5886 Tgt 5900,5917 and 5932(Nifty Spot Levels)

Sell below 5833 Tgt 5816, 5800 and 5785 (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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3 thoughts on “Nifty Trading Strategy after better than expected IIP and Inflation data.

  1. Bramesh Post author

    Dear Sir,

    Professional traders will always Sell options as odds are winning are more than a Option Buyers. Having said that if everything is know to you whats the fun in trading 🙂

    Rgds,
    Bramesh

  2. Akash Patel

    Hello sir,
    is that any system to confirm that FII bought or wrote the option? because we can only know that OI in option in particular strike-price increase/decrease. so how could we confirm it.
    thanks.

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