Nifty Future Bottom

Good Morning and Wish You a Happy Trading Session ….

After making intraday high at 10277.95(my prediction was 10284) Nifty Future start to fall as expectation. From intraday low 10155 Nifty Future reverse to 10246.

From 11793 (life time high, made on 31 August’18) Nifty Future already corrected 14.43% (1701 points).

This type of correction and pattern indicating that fall will be continue (but as part of any move a bounce back rally is natural)

Today is derivative expiry; this event may be the provider of strength of a pullback rally.

FII/FPI & DII trading activity on NSE, BSE and MSEI

After two days from three digit net trade to four digit trade was again performed by Foreign Institutional Investors. Yesterday they have net sold -2046.54 Cr

 Domestic Institutional Investors have sold 3456.81 Cr. Against buy of 5330.32 Cr.

India VIX Snapshot

At yesterday’s session volatility decreased gradually. Yesterday from 22.3475 the index was down by 11.35%.

Today volatility may increase, cause of Derivative Expiry. If India VIX able to cross 20.3520 then volatility may increase again.

OI at Option Trading

Strike price of most active Nifty CALL was 10400, OI was 30, 39,900.

But most active PUT was 10000, and open interest was 42, 65,250. From last few sessions most active put option is 10,000. And Nifty Future yesterday made low 10092.

 If Nifty Future breaks the level then Panic selling will be stronger for sudden hours, a bounce back rally is on card.

Key Support-Resistance level of Nifty Future

Vital resistance of the day is 10282.5/10284. If Nifty Future crosses 10284 with volume, then it may touch 10319.90(!). But chance is very remote.

This is not a bull phase, from any resistance Nifty Future melt down sharply.

Below 10066 next supports are 9958.75. If Nifty Future break the level, then may take vital support at 9848--9845.95--9843.

Closing below the last mentioned support Nifty Future may take support at 9580. (Not today).

Today’s Overview:

If volume support then Nifty Future may form bottom today (for the time being). A reverse rally is on card.

Therefore your Nifty trading strategy should be short on intraday basis, and long for positional trade.

Today is derivative expiry; it may be the turning time.