Nifty completes ABCD harmonic pattern, How to trade now

By | August 25, 2014

FII_1

  • FII’s bought 4.7  K contract of Index Future worth 191 cores, 379 Long contract were added and 4.3 K short contracts  were squared off by FII’s. Net Open Interest decreased  by 4 K contract , so FII are doing profit booking  in short Index Futures.
  • Nifty  did another life high today @ 7969 and saw a reversal after 2:30 PM, as seen in below hourly chart, expanding triangle pattern is forming in Nifty suggesting if 7785-7755 is not held expiry can be seen below 7800.

nifty hourly

 

Nifty also completed the Harmonic bearish pattern ABCD, it gets activated on close below 7900. Also for 5 day in row nifty was not able to close above the neo wave number of 7917 as discussed in weekly analysis.

nifty daily

 

  • Nifty Future Aug Open Interest Volume is at 1.28 cores with liquidation of 15.3  lakh suggesting long liquidation and 11 lakh got rollovered to September series.VIX being very low suggests bulls are still overconfident and every dip is getting bought into.
  • Total Future & Option trading volume was   at 3.08  lakh core with total contract traded at 2 lakh. PCR @1.01
  • 8000  CE  OI at 99.1 lakh  suggesting wall of resistance , 7800 CE  liquidated 6 lakh  suggesting bears cutting down positions  . 7900 CE liquidated 0.4 lakh suggesting bears are making resistance on 7900 . FII’s bought 13 K CE longs and 2.3K  CE were shorted  by   them.
  • 7800 PE OI@ 62.2 lakhs so strong base @ 7800. 7700 PE liquidated 7.2 lakh in OI, Break of 7800 can bring panic in bull camp .FII’s bought 9.3 K contract  PE longs and 26.7  K PE were  shorted  by them.
  • FII’s bought 127 cores in Equity and DII bought 45 cores in cash segment.INR closed at 60.56.

 

Buy above 7925 Tgt 7950,7970 and 8000 (Nifty Spot Levels)

Sell below 7898 Tgt 7880, 7855 and 7810 (Nifty Spot Levels)

 

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4 thoughts on “Nifty completes ABCD harmonic pattern, How to trade now

  1. Solanki Pramendra

    Vikas Patil ji, ABCD pattern target 7700/7709(spot).

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