Nifty Trading Tips & Foreign Institutional Investors Derivative Data – 30 October’2012

The Bse Index Shuts at 18636 up 11 points from its Previous Close or +0.06%. The Nse Index Shuts at 5666 up 2 Points from its Previous Close or +0.02%.

On End of Day Chart Nifty Still below weekly average and now Nifty Month average is at 5595 and then three months average at 5430. Indicators or still on Selling Side.

  • RBI macro view on Indian Economy was out today and the most important take away was, Monetary policy needs to be cautious in the interim, focusing on inflation while using the available space to support growth to the degree it can, It indicates interest rates are likely to go down but will it be tomorrow as Festival gift, obscurity will be determined by tomorrow 11 AM.

FII Derivative Data:

  • Foreign Institutional Investors sold 4589 Contracts of Index Future, worth 120 cores with net OI decreasing by 7175 contracts.
  • Nifty Future was up by 3 points and Open Interest in Index Futures decreased by 7175, so Foreign Institutional Investors again liquidated longs which were rollover from October series. Nifty formed a doji candle pattern which is signaling indecision with regards to the trend of Nifty ahead of tomorrow’s key event of RBI’s mid quarterly policy review.
  • Nifty Spot closed at 5666 after making a high of 5698 and low of 5645.Nifty spot again was unable to break 5725 and 5638 so still trading within the range of 5635-5725.Tomorrow event RBI can again push Nifty to higher end of range, Nifty is expected to make volatile moves 15 mins before the news come out
  • Resistance for Nifty has come up to 5698 and 5725 which needs to be watched closely ,Support now exists at 5651 and 5635 .Trend is Sell on Rise till 5725 is not broken on closing basis.
  • Nifty Future November Open Interest is at 1.78 cores with liquidation of 1.6lakh in OI, long liquidation in Nifty. Only concern is 40 points premium is Nifty Future which denotes extreme level of Bullishness in market participants so caution is advised in long positions.
  • Total F&O turnover was at 0.77 lakh Cores with total contract traded at 1.49 lakh, PCR at 0.89 and VIX at 15.12.Cash market Volume were low as compared to Friday suggesting lack of participation of investors/traders ahead of the key economic event.
  • 5900 Call is having highest Open Interest of 42 Lakhs with addition of 4.4 lakhs in OI, 5800 Call added 4.6 lakhs in OI with net OI at 38 Lakhs. 5400-6000 Call added 18.7 lakhs in OI
  • 5600 Put is having highest Open Interest of 44 lakhs so 5600 is strong base for Nifty from start of November series. 5400 PE again added 7 lakhs in OI, Thus 18 lakhs OI added in 2 days with average premium of Rs 16. FII were net buyers in Options worth 1172 cores and looking at data it suggests they have bought equal amount of Calls and Puts suggesting volatile session ahead 5400-6000 Put added 18 lakhs in OI. Rupee loses 52 paise to slip below 54-mark ahead of RBI meet.
  • Nifty Futures Trend Deciding level is 5677(For Intraday Traders), Trend Changer at 5716 Nifty (For Positional Traders).
  • 5 DMA at 5689
  • 20 DMA at 5695
  • 50 DMA at 5538
  • 200 DMA at 5272
  • 5 Days Relative Strengthen Index at 41 and 14 Days Relative Strengthen Index at 53 Indicates Nifty in Neutral Zone.

Nifty Spot Support & Resistance:

Nifty Resistance at It has the First resistance close to the level 5688 and above the level marks the track point at 5711 later zipper levels at 5755 marks.

Nifty Support at It has the First support close to the level 5644 and below the level marks the track point at 5622 later zipper levels at 5600 marks.

Nifty Future Momentum Call for 30 Oct’2012:

Buy above 5711 sl 5688 Tgt 5733-5755 {Or} Sell Below 5688 sl 5711 Tgt 5666-5644

Bank Nifty Future Momentum Call for 30 Oct’2012:

Buy Above 11622 sl 11577 Tgt 11666-11711 {Or} Sell Below 11533 sl 11577 Tgt 11488-11400