Nifty at life high, How to trade on 21 Jan

By | January 20, 2015

FII

  • FII’s bought 83.7 K contract of Index Future worth 1749 cores, 96.9  K Long contract were added  by FII’s and 13.2 K  short contracts  were added by FII’s. Net Open Interest increased  by 110 K contract ,so FII’s added both long and   shorts in index future in a dull day of trading.
  • Nifty made new life high today @ 8707 as we have been anticipating , As discussed in last analysis  Nifty closed above 8550 suggesting supply is getting observed. As per Hourly chart breakout has happened and new high is round the corner, Also as per gann box analysis Nifty was able to close above  yellow line convincingly so possibility of big rise is round the corner. Expect a trending move in next 2 trading sessions. Also in our Weekly Analysis Gann date should have helped traders. As per Elliot wave current up move can go till 8750/8770 range before time wise correction.

Nifty Hourly EW

nifty hourly

  • Nifty Future Jan Open Interest Volume is at 2.17  core with addition of 16.6 lakh in OI, major short liquidation and fresh long addition seen.
  • Total Future & Option trading volume was   at 2.90 lakh core with total contract traded at 5 lakh. PCR @1.06,VIX still trading above 17 keeping option premium high, good time for option writers as once VIX goes down prices will crash vertically. VIX is rising as we have Japan and EU central banker policy on 21 and 22 Jan.
  • 8700  CE  OI at 48 lakh so wall of resistance @ 8700  .8200/8500 CE saw huge liquidation of 20  lakhs so bears continued with their covering of Calls. FII bought 96.6 K CE and 3.6 K CE  were shorted  by them.
  • 8400 PE OI@ 56  lakhs so strong base @ 8400. 8600/8700 PE  added 40.3 lakh in OI so base formation is happening at 8600/8700. FII sold 4.9 K PE and 49.2 K PE were shorted  by them.
  • FII’s bought 1275 cores in Equity and DII sold 761  cores in cash segment.INR closed at 61.69.

 

Buy above 8708 Tgt 8744,8764 and 8792 (Nifty Spot Levels)

Sell below 8658 Tgt 8638,8610 and 8575 (Nifty Spot Levels)

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5 thoughts on “Nifty at life high, How to trade on 21 Jan

  1. john

    Party got over for calls. inviting for puts.( when ball goes up in air it tend to comes down) with great speed be Caution. ha ha ha

  2. Bramesh Post author

    Basically after big moves market try to form a small trading range in which it neither goes up nor down.

  3. radesyam1

    brameshgaru
    please give some explanation about tim e wise correction. heared about technical bounce and technical corection. what is time wise correction
    thanks in advance
    syamala

  4. H BASAVARAJ

    lot of activity in CE9000 & PE8800 FII’s in full mood & market in their hand as they can invest another 5000 cr nifty may land on moon today.
    New highs reminds scary last week of dec series as both FII’s & DII’s have lot of longs in PUT’s and fall anytime

  5. Sandeep

    Hmm 🙂 Interesting details Sir .Seems we have scaled Kanchenjunga on Nifty,Mount Everest is still left to scale .Lets see how it goes in coming days.

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