Nifty Trading Plan for 22 DEC

FII bought 36.2 K contract of Index Future worth 3068 cores, Net OI has decreased by 16.9 K contract 9.6 K Long contract were added by FII and 26.5 K Shorts were covered by FII. Net FII Long Short ratio at 1.93 so FII used RISE to ENTER longs and EXIT Shorts.

As Discussed in Last Analys Now we are back to gann angle support and Sun Moving in Capricon and also yearly gann cycle on 21 Dec. Check last week 21 Dec we made a bottom and rallied. Bulls need to move above 16794 for a move towards 16922/17050. Bears will get active towards 16666 for a move towards 16538/16410.Nifty opened with gap up made a low of 16688 unable to break 16666 and once bulls were above 16794 did 1 target on upside bounced from gann angle but formed perfect DOJI. Now Bulls need to move above 16817 for a move towards 16882/16946/17075. Bears will get active below 16741 for a move back to 16676/16611/16546

Intraday time for reversal can be at 9:36/10:50/11:56/2:48 How to Find and Trade Intraday Reversal Times

MAX Pain is at 16800 PCR at 0.83, PCR below 0.9 and above 1.3 lead to trending moves, and in between leads to range bound markets. Another big move will be seen.

Nifty Dec Future Open Interest Volume is at 0.97 Cores with liquidation of 5.3 Lakh with increase in cost of carry suggesting SHORT positions were closed today.

There is total OI of 9.15 Cores on the Call side and 4.34 Cores on the Put side, So, the activity is more on the CALL side, indicating option writers are in BEARISH zone.

FII’s have been short from higher levels around 17300, We need a firm close above previous day high , Even if nifty rises by a couple of hundred points also – they will not go into loss. So, my assumption is they will not cover the shorts in a hurry – but are playing for a range bound market by dealing in the option segment actively. Their put writing ( PCR is increasing) and call buying against their shorts will lead to extended profits for them.

The Option Table data indicates decent support at 16600 and reasonable resistance at 17000 .There is total OI of 7.1 Cores on the Call side and 4.6 Cores on the Put side, So, the activity is more on the CALL side, indicating option writers are in BEARISH zone.

FII’s sold 1209 cores and DII’s bought 1404 cores in cash segment.INR closed at 75.66

Retailers have sold 284 K CE contracts and 172 K shorted CE contracts were covered by them on Put Side Retailers bought 282 K PE contracts and 268 K PE contracts were shorted by them suggesting having BEARISH outlook,On Flip Side FII sold 15.6 K CE contracts and 47.9 K shorted CE were covered by them, On Put side FII’s sold 45.2 K PE and 38.1 K shorted PE were covered by them suggesting they have a turned to NEUTRAL Bias.

The critical quality needed to make money in this kind of market, where trends will flip on no notice is: Extreme flexibility Be prepared to flip your positions and trades with market flavour.It is always the minority which wins in the markets. So, be open for possibilities.

For Positional Traders Stay long till we are holding Trend Change Level 16850 and stay short below it. That will help you stay on the side of Institutions and which has a greater risk-reward ratio. For Intraday Traders 16835 will act as a Intraday Trend Change Level.

Buy Above 16730 Tgt 16794, 16858 and 16922 (Nifty Spot Levels)