Nifty plunges 1.3% on panic selling, How to trade

By | January 2, 2014

FII_1

  • FIIs sold 817 contracts of Index Future  worth 26 cores (1894 Longs were added and 2711 shorts were added ) with net Open Interest increasing by 4605 contracts, so FII’s added both  shorts and long in today’s session. Again the fall today was not backed by FII’s selling. FII will start trading actively only after 6 Jan, so volatile moves will continue. Do not surprised if we see an up move tomorrow.
  • As discussed in Weekly Analysis   Nifty broke the Weekly trend changer level of 6326 and achived almost 2 targets. We have been discussing from past 2 days,as per time analysis we can see a sharp move of 2 Jan +-1 day and market obliged us today.Todays fall was more due to lack of FII participation, these kind of waterfall decline occurs on lack of downside limit orders. Nifty will again fall near an important support level of 6191, Holding the same we can see a bounce back till 6267,6284 levels. Trades who took short as per PAC today, part book.

nifty daily

  • Nifty Future January Open Interest Volume is at 1.93 cores with liquidation of 4.9 lakhs in Open Interest,with reduction in cost of carry signalling long liquidation and short addition.
  • Total Future & Option trading volume at 1.39  lakh with total contract traded at 3.2 lakh  .PCR (Put to Call Ratio) at 0.88.
  • 6500 Nifty CE  is having highest OI at 50.4 lakhs , still remain resistance. 6400 CE added 1.3 lakh and 6300 CE added 6.8 lakhs signalling call writers holding the base strong and  6300 will become resistance now. 6000-6500 CE added 16.4 Lakh in OI.FII’s bought 7.1 K contracts of CE and 12.2 K were shorted.
  • 6200 PE   is having highest OI at  36.7  lakhs suggesting strong support at 6200 and will be short term bottom of the market. 6300 PE liquidated 5.5 lakh suggesting panic in bull camp. 6200-6400 PE liquidated 3.4 Lakh in OI.
  • FIIs bought 10 cores in Equity ,and DII sold 222 cores in cash segment.INR closed at 62.26.

Buy above 6244 Tgt  6264,6287 and 6310 (Nifty Spot Levels)

Sell below 6211 Tgt 6191 ,6169 and 6149 (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/

9 thoughts on “Nifty plunges 1.3% on panic selling, How to trade

  1. Vinod

    Dear Bramesh, placing a stop lost limit order on downside does it indicate absence of FII’s and small retail investors placing limit order for lower value and getting triggered at lower price due to which fall happened ?

  2. Augustin

    Just came across your blog and found it very good. Can you post your thoughts on Bharat Forge for Jan series? Any chances of bouncing back to 330 levels?

  3. VK

    Hi Mr. BRAMESH,

    Your NIFTY daily updates are proving to be nearly accurate, specially, the time line for a minor crash and the bounce back today.

    KUDOS to you. Best wishes.

  4. J Antony

    Hi Ramesh,

    I have been reading your analysis for quite some time. Would like to know about the training you provide. Can you please send me your contact number and other details?

  5. Bramesh Post author

    Follow the system is golden rule!!

    Rgds,
    Bramesh

  6. ravikumar

    Good one sir. I was watching seriously your posting, I shared with my friends,in a bull market how is possible for + and – in a single day without any news? I lively saw yesterday (2.1.2014). Sir let me know do you have any extraordinary power? May God bless u with HEALTH, WEALTH &
    POWERS!!!!

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