Nifty whipsawing traders, trending move round the corner

By | February 4, 2015

FII

  • FII’s bought 6.7 K contract of Index Future worth 220 cores, 10 K Long contract were squared  off by FII’s and 16.8 K  short contracts  were squared  off   by FII’s. Net Open Interest decreased  by 26 K contract ,so FII’s squared  off  both shorts and long  in Index Futures.
  • Nifty corrected for fourth day in a row but momentum is missing on downside, Nifty fall is lead by banks and bank nifty is near an important AF support as seen in bottom chart and nifty is not able to break the red line of gann box convincingly keeping both bulls and bears in state of confusion. Intraday volatility is also huge whipsawing traders on both side. As i always say in my article when unable to understand market moves better to stay out and sit on sidelines and protect your trading capital.

NIFTY - Gann Box

BN AF

  • Nifty Future Feb Open Interest Volume is at 2.52 core with liquidation of 1.15 lakhs so bears covered shorts today in volatile session today.
  • Total Future & Option trading volume was   at 1.72  core with total contract traded at 3.9 lakh. PCR @0.88,PCR has come to its lower end suggesting relief rally can be seen in next 2 days if 8720 is held.
  • 9000  CE  OI at 53.7  lakh so wall of resistance @ 9000 .8800/8900 CE added 6.4  lakhs so bears have started shorted 8800/8900 CE tune of 14 lakh, and creating resistance at higher levels but writers will have test in next 2 days. FII sold 4.1 K CE and 9.7 K CE were shorted  by them.
  • 8500 PE OI@ 29.8  lakhs so strong base @ 8500. 8700/8800 PE  added 14 lakh in OI so bulls are still making ground , next 2 days will be interesting as we will see trending move and one party will have to cover the positions.This kind of market are good for option writers. FII bought 31 K PE and 1.3 K PE were  shorted by them.
  • FII’s sold 83 cores in Equity and DII sold 72 cores in cash segment.INR closed at 61.73.

 

Buy above 8740 Tgt 8776,8792 and 8828 (Nifty Spot Levels)

Sell below 8704 Tgt 8688,8652 and 8600 (Nifty Spot Levels)

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4 thoughts on “Nifty whipsawing traders, trending move round the corner

  1. T.Srinivas

    SIR, I am honoured to recieve your words, and your No. I shall try to call you when you are free, and maybe we can meet if you permit.Thanking -you.

  2. ParagtheGreat

    Very Good. Thanks once again for this wonderful analysis.

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