Nifty technical set up before crucial RBI policy


  • FII’s sold 9.8 K contract of Index Future worth 188 cores ,7.1 K Long contract were squared off by FII’s and 1.5 K  short contracts  were added by FII’s. Net Open Interest decreased  by 6.6  K contract, so today’s rise was used by FII’s to exit longs in index futures and enter shorts. Trading Behaviors That Destroy Traders
  • Nifty continue to form higher high and higher low formation suggesting the trend is up, but is entering the crucial supply area as discussed in Weekly analysis. RBI policy today is clashing with gann date suggesting big move should be seen either today or tomorrow. As shown in Gann Box below strong support at 3×1 gann line@8500  below that index can see fast correction till 8420 odd levels. Nifty is also stuck in gann arc again suggesting big move is coming so trade with extreme caution.

NIFTY - Gann Box

Nifty Gunner

  • Nifty August Future Open Interest Volume is at 1.68 core with liquidation of 4 Lakh, with decrease in CoC suggesting  long positions got closed today.NF Rollover price came at 8503.
  • Total Future & Option trading volume was   at 1.19 core with total contract traded at 2.1  lakh lowest in past 6 months. PCR @0.75
  • 8800  CE  OI at 35.4  lakh , wall of resistance @ 8800 .8400/8800 CE added 1.1 lakh in OI. FII bought 12.1 K CE longs and 426 shorted CE were covered by them.Retail bought 42.6 K CE contracts and 43.2 K CE were shorted by them.
  • 8200 PE OI@ 41.5 lakhs  strong base @ 8200.  8300/8600 PE  added 10.2  lakh so major addition seen in  8400/8600 PE and 34.5 lakh from start of series . FII bought 8.5 K PE longs and 4.6 K PE were shorted by them.Retail bought 59 K PE contracts and 56 K PE contracts were shorted by them.
  • FII’s bought 350 cores in Equity and DII’s sold 33  cores in cash segment.INR closed at 64.01


Buy above 8550 Tgt 8571,8600 and 8625 (Nifty Spot Levels)

Sell below 8530 Tgt 8512,8483 and 8456 (Nifty Spot Levels)


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One Comment

  1. BTC said:

    Big move coming, book profits or hedge positions, Chances of Up 40%, Down 60 %.

    August 4, 2015

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