Nifty forms another DOJI, how to trade next move

By | January 21, 2015

FII

  • FII’s bought 28 K contract of Index Future worth 483 cores, 43.6  K Long contract were added  by FII’s and 15.6 K  short contracts  were added by FII’s. Net Open Interest increased  by 59.2 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 @ 8742 with another DOJI candlestick formation, many traders are asking can we see correction in short term, as per my perceptive last rally we saw from 7723 to 8627 was 904 points long and took 33 days to complete, the current rally which started from 7961 till 8742 is just  781 points and consumed 26 days  so still there is room for upside, Also max correction we have seen is 88 points so if pullback in this range use this to buy. As i always say do not try to pick tops and bottom, go with the trend.

Nifty Hourly EW

nifty hourly

  • Nifty Future Jan Open Interest Volume is at 2.21  core with addition of 4.6 lakh in OI, major short liquidation and fresh long addition seen.
  • Total Future & Option trading volume was   at 2.67 lakh core with total contract traded at 3.9 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.
  • 8700  CE  OI at 43.6 lakh so wall of resistance @ 8700 but getting weaker  .8200/8500 CE saw huge liquidation of 19.6  lakhs so bears continued with their covering of Calls. FII bought 49.1 K CE and 7.5 K shorted  CE  were covered by them.
  • 8600 PE OI@ 51.9  lakhs so strong base @ 8600. 8800/8700 PE  added 11.3 lakh in OI so bulls are preparing ground for further assault and climbing over 8700. FII sold 19.4 K PE and 72.2 K PE were shorted  by them.FII are going for no holes bared against bears.
  • FII’s bought 2065 cores in Equity and DII sold 1350 cores in cash segment.INR closed at 61.63.

 

Buy above 8725 Tgt 8751,8772 and 8803 (Nifty Spot Levels)

Sell below 8690 Tgt 8669,8646 and 8620 (Nifty Spot Levels)

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7 thoughts on “Nifty forms another DOJI, how to trade next move

  1. H BASAVARAJ

    hi bramesh i want to know whats happening around PE8800 theirs lot of activity are FII’s writing in this strike
    with regards

  2. H BASAVARAJ

    rightly pointed out and options data also points as both FII’s and DII’s have very high longs in PUT’s must correct around 400 points , but the other way in past 10 days FII’s have come back in big way and going long in big way they can buy another 5000 cr in that case nifty may land on mars 9100

  3. Bramesh Post author

    You can use these levels to trade Futures Options based on your risk management.

    You need to decide which one u want to trade. My advise do not touch option try to trade in Futures.

    Rgds,
    Bramesh

  4. sanketh shetty

    21st January 2008 stock market highest crashed from life high !!

    7 years later today market again at lifetime high (21st Jan #sameDate)

    Will history repeat today..!!??

  5. Ajay

    Hi Bramesh

    Count me in one of your new followers. I have been reading your posts since last couple of days and I saw your analysis quite perfect and accurate (with regards to Market Direction)

    I have couple of questions.
    In summary part of your post,where you mentioned about NIFTY buying and selling targets , are these for futures trading only ? Or for Option trading also ?

    If its for options trading also , how and what( PE or CE) do I need to perform the selling part of the range 8690 – 8620 ?

    Lastly I want to learn technical analysis.. Can I get some guidance from You ? Do you provide any tutorials with live examples ? 🙂

    Once again Thanks A lot

  6. prakash tanak

    Sir,

    Please check/ When I tried to open your new post about Lupin etc. I am getting following message :

    404: Page Not Found
    Looks like nothing was found on this url. Double-check that the url is correct or try the search form below to find what you were looking for.

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