Nifty Analysis for 27 Aug

By | August 27, 2021 8:30 am

  • FII sold 2.9 K contract of Index Future worth 208 cores, Net OI has decreased by 59.2 K contract 36.2 K Long contract were covered by FII and 23 K Shorts were covered by FII. Net FII Long Short ratio at 1.85 so FII used rise to exit longs and exit  shorts.
  • As discussed in  Last Analysis  Bulls were able to do 16682 target on upside made a new life high, Now bulls need to hold 16610-16600 range for upmove to continue towards 16688/16753/16817. Today we have Moon Declination suggesting next 2 days we will get another big move. Bears will get acive below 16583 for a move towards 16519/16454/16390. Nifty did  1 target on upside,Price has been struggling at gann angle as shown in below chart, with time cycle coming we could see potential big move as price time meets. Bulls need move above 16650 for a move towards 16729/16800. Bears will get active below 16583 for a move back to 16519/16454.

  • Nifty Rollover cost @16623 closed above it. From 24th August  till 27th August  September Series NIfty Futures has added approximately 87 Lakh OI. And in that time span,Nifty has traded with a low of 16533 and high of 16745 . We should see voilent move once this range is crossed during September series. 
  • Nifty Sep Future Open Interest Volume is at 1.23 Cores with addition of 28.6 Lakh with decrease in cost of carry suggesting LONG position were closed today.
  • There is total OI of 4.3 Lakh on the Call side and 3.9 Lakh on the Put side. So, the activity is more on the Call side, indicating Option Writers are having Bearish Bias.
  • The Option Table data indicates decent support at 16500 and reasonable resistance at 16800 at the start of new Weekly Expiry
  • We do not get into strong bull trend without backing of  equity Buying.This Series we have seen good fall in MId and Small Caps Stocks. FII’s might be  adopting a wait-and-watch policy and are playing the market with a very short term outlook.
  • We have seen continuous selling by FII’s. FII have sold around 10722 crore equities counting from starting of this series. Out of which 9388 crore has been bought by DII. In 2021 From April till August FII have sold Equities Worth 41 K Cores FII withdrawal from equities is not a good sign for bull market.

Buy Above 16650 Tgt 16675, 16700 and 16729 (Nifty Spot Levels)

Sell Below 16599 Tgt 16561, 16535 and 16500 (Nifty Spot Levels)

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