Nifty trading stratergy for Election day

By | May 15, 2014

FII_1

  • FII’s bought 6428 contract of Index Futures worth 232 cores (9.3 K  longs were added and 2.9 K shorts were added in Index Future) with net OI increasing by 12.2 K contracts. So FII’s going on D day with positive bias.
  • Nifty continued with its consolidation before the D-Day Today was a perfect day of consolidation after 3 days of run up, Breakout of this range comes above 6172 and breakdown below 6067. Price Action is bullish lets see how market reacts tomorrow. As per update Elliot wave chart 7229 and 7412 are the near term target of Nifty. Trade with extreme caution tomorrow. Trend will start coming by 9:30 and major trend will get around 12 PM, so expect some explosive move around these time.

nifty hourly

  • Nifty Future May Open Interest Volume is at 1.79 cores with addition of of 9.1 lakhs in Open Interest, suggesting long addition.
  • Total Future & Option trading volume at 1.71  lakh core with total contract traded at 2.1 lakh.PCR @0.75
  • 7200 Nifty CE  is having highest OI at 61.1  lakhs followed by 7500 CE, so 7500 can offer some resistance of market tomorrow  ,7400 CE is also having an OI of 48.3 lakhs and it seems smart money is selling 7400 CE. FII’s bought 49.8  K CE longs and 1.13 lakh CE  were shorted by them such a huge addition in call short indicates next week after election results are out of way VIX will collapse leading to big sell off in options premium.
  • 6400 PE   is having highest OI at  52.2  lakh  remains a strong support for the series. 6900-7000 PE saw a good addition are upcoming support of the market. FII’s bought 61.9 K PE longs and 34.9 K were shorted by them.
  • FIIs bought 934 cores in Equity and DII sold 385  cores in cash segment.INR closed above 59.28.

Buy above 7156 Tgt 7189,7226 and 7300(Nifty Spot Levels)

Sell below 7119 Tgt 7067, 7014 and 6931 (Nifty Spot Levels)

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