Nifty bounces from gann arc,FII FnO Analysis

• FII’s bought 34.1 K contract of Index Future worth 801 cores ,33.3 K Long contract were added by FII’s and 779  short contracts  were squared off FII’s. Net Open Interest increased  by 34.1 K contract, so today’s rise in market was used by FII’s to enter long  and exit  shorts in Bank Nifty Index futures  How trader reacts when market move against them ?

• This is what we discussed yesterday   Close above 7563 is required for bulls to have some relief rally till 7700/7760, Bear market rallies will be fast and furious always keep this in mind while trading the next 3 days. Nifty formed double bottom at 7540 as 08 Aug 2014 low and today low were same. Gann arc/Fibo Fans also provided support and gave indication of rally and we are heading towards 7760/7830 if 7700 held on closing basis.
  

 

• Nifty September Future Open Interest Volume is at 2.37 core with addition of 1.7 Lakh with increase in OI and increase in CoC suggesting long position have been added. Rollover stand at 65 % and avg cost of rollover @ 7998.

• Total Future & Option trading volume was   at 2.19  Lakh core with total contract traded at 6.9  lakh . PCR @0.85 and VIX trading at 24.56.

• 8000  CE  OI at 36.6  lakh , wall of resistance @ 8000 .7700/8200 CE liquidated 10  lakh in OI so bears started liquidating with a 150 point rise from low but still holding 89 Lakh.  FII bought 4.9 K CE longs and 64.2 K CE were shorted  by them.Retail sold 15 K CE contracts.
  

• 7500 PE OI@ 46  lakhs  strong base @ 7500.  7900/8100 PE  liquidated 1.26 lakh so bulls did not use the rise to add position suggesting still short covering rally, and next 2 days if addition than only we can say short term bottom formed. FII bought 20 K PE longs and 13.5 K PE were shorted by them.Retail bought 71.3 K PE contracts and 5.1 K PE contracts were shorted  by them.
  

• FII’s sold 659 cores in Equity and DII’s bought 447cores in cash segment.INR closed at 66.54 trading at 2 year low.1997 Asian Currency Crisis happening again
  

• Nifty Futures Trend Deciding level is 7654 (For Intraday Traders). NF Trend Changer Level (Positional Traders) 7828 and BNF Trend Deciding Level 16200 (For Intraday Traders) BNF Trend Changer Level (Positional Traders) 16666 How to trade Nifty Futures and Bank Nifty Futures as per Trend Changer Level .

Buy above 7721 Tgt 7760,7800 and 7830(Nifty Spot Levels)

Sell below 7680 Tgt 7650,7630 and 7600 (Nifty Spot Levels)

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