Nifty Consolidates after Big rally, How to trade now ?

By | January 15, 2014

FII_1

  • FIIs sold 13253  contracts of Index Future  worth 413.4 cores (4934 Longs were added  and 18187 shorts were added ) with net Open Interest increasing by 23121 contracts, so FII’s are added majority shorts and added partial longs in index futures signalling range bound moves ahead.
  • After a big rally on Monday, Tuesday was a perfect day of consolidation.Nifty is doing range contraction forming an identical symmetrical triangle, signalling a breakout/breakdown is on cards. Breakout above 6288 for a minimum target of 6337.

nifty daily

  • Nifty Future January Open Interest Volume is at 1.77 cores with addition of 1.7 lakhs in Open Interest,with reduction in cost of carry signalling long liquidation and short addition..
  • Total Future & Option trading volume at 1.02  lakh with total contract traded at 1.5 lakh.Cash market volumes were below normal suggesting its was a technical pullback  .PCR (Put to Call Ratio) at 0.96.
  • 6300 Nifty CE  is having highest OI at 52.3 lakhs , remain resistance for the series. 6400 CE added 4.6  lakh and 6200 CE liquidated 1.2 lakhs signalling 6200 strong support for time being. 6000-6500 CE added 8 Lakh in OI.FII’s bought 5.4 K contracts of CE and 1.6 K shorts were added.
  • 6200 PE   is having highest OI at  62.6  lakhs suggesting strong support at 6200,6300 PE liquidated 0.8 lakh, suggesting fight will be on for 6300 tomorrow. 6000-6500 PE liquidated 10 Lakh in OI. FII’s sold 3.6 K contract of PE so dip was used by FII to book profit in PE.
  • FIIs sold 260  cores in Equity ,and DII sold  97 cores in cash segment.INR closed at 61.51.

Buy above 6252 Tgt  6270,6288 and 6310 (Nifty Spot Levels)

Sell below 6234 Tgt 6224 ,6210 and 6190 (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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