Nifty Levels & Strategy for 08/Dec/2022

Dec 7, 2022

Dear traders, I have identified chart levels based on my analysis, major support & resistance levels. Please note that I am not a SEBI registered member. Information shared by me here for educational purpose only. Please don’t trust me or anyone for trading/investment purpose as it may lead to financial losses. Focus on learning, how to fish, trust on your own trading skills and please do consult your financial advisor before trading.

Nifty: FIIs are super bearish from last 2 days. They are net seller in Dec. Today, market didn't like the RBI policy (specially commentary). Tomorrow's market move will be mainly based on Gujarat election outcome. My strategy will sell on rise with strict SL for tomorrow if I get good trade setup and decent Risk:Reward.

Important events to keep in mind for coming days:
1.Gujrat results on Dec-08.
2.USA Fed meeting (next week). Another rate hike of 0.75% is likely to happen.
Is volatility likely to grow in coming days????? Please trade carefully with hedged positions (overnight)/strict SL (intraday)

Please find below scorecard, PCR update & options statistics for your reference:
NIFTY SCORECARD DATED 07/DEC/2022
NIFTY IS DOWN BY -82 POINTS

Name Price Previous Day Change % Change
Nifty 18561 18643 -82.25 -0.44%
India VIX 14.08 14.04 0.04 0.25%

OPTION STATISTICS BASED ON 08/DEC/2022 EXPIRY DATA
Max OI (Calls) 18800 (Open Interest: 11733750, CE LTP: 6)
Max OI (Puts) 18500 (Open Interest: 6500400, PE LTP: 23.4)
PCR 0.55 (PCR is in oversold zone)

Nifty Calls:
ATM: Short Buildup, OTM:Short Buildup, ITM:Short Buildup, FAR OTM:Short Buildup
Nifty Puts:
ATM: Short Covering, OTM:Short Buildup, ITM:Short Covering, FAR OTM:Long Liquidation

Dec 7, 2022

Note

FIIs & DIIs, Cash & F&O Buy/Sell Data Analysis Dated 07/Dec/2022

FIIs: Super Bearish in Cash & F&O
FIIs have SOLD in cash market for -1242 Crores and SOLD in derivatives market for -3322 Crores. FIIs have added new bearish positions in all types of contracts. They did PnL booking only in long contracts of index future, stock future & stock call. They are sounding super bearish after RBI monitory policy & ahead of Gujarat election results.

FII CHANGE OI IN INDEX CALL/PUT:
INDEX CALL CHANGE OI:-0.23L, INDEX CALL LONG:0.46L, INDEX CALL SHORT:0.68L
INDEX PUT CHANGE OI:0.09L, INDEX PUT LONG:0.1L, INDEX PUT SHORT:0L

FII NET OUTSTANDING OI IN INDEX CALL/PUT:
INDEX CALL NET OUTSTANDING OI:1.26L, INDEX CALL LONG:6.22L, INDEX CALL SHORT:4.96L
INDEX PUT NET OUTSTANDING OI:2.66L, INDEX PUT LONG:6.14L, INDEX PUT SHORT:3.48L

DIIs: Bullish in Cash & mild bearish in F&O
DIIs SOLD in cash market for -559 Crores. DIIs have added new bearish positions in index put & stock call options. They have added few bullish positions in stock future & did PnL booking/reduced positions in only short contracts of index future & stock future.

Pro Traders: Bearish
Pro traders have added new bearish positions in index call, stock call & stock put options. They have added relatively lower numbers of bullish contracts in index future, stock future & index put (PE writing).

Retail Traders: Super Bullish
Retail traders have heavily added new bullish positions in all type of F&O contracts. Today, Retail traders are badly trapped on wrong side. God bless them ahead of Gujarat election results.

Please do review, analyse and share your comments as well. Many thanks for following me on twitter, liking my analysis & retweet. Let us work and win together.

Disclaimer: I have analysed the data based on my limited knowledge. I am not a SEBI registered member. Information shared here for educational purpose. Please don’t trust me for trading as it may lead to financial losses. Please consult your financial advisor before trading.