Nifty: Will Nifty hit 11000 or not??? Hanging Man

NSE:NIFTY   Nifty 50 Index
Closing Price 10799


- Nifty trading above the red trend line for 2nd day in a row

- However a Hanging Man Candlestick pattern is observed

Let us look at F&O data to analyse it further

FIIs net sold 4811 contracts worth Rs 409.43 Cr.

Futures data
• Retail participants added 16.22K Long contracts & added 2.77K Short contracts
• FIIs squared off 4.81K Long contracts & squared off 4 Short contracts
• Pro traders added 1.61K Long contracts & also added 8.31K Short Contracts

Call option
• Retail traders added 29.21K Call Longs & added 15.17K Call shorts
• FIIs added 6.2K Call Longs & added 3.31K Call short
• Pro traders squared off 18.9K Call Longs & squared off 1.97K Call shorts

Put option
• Retail traders added 1.17 Lakhs Put Long & added 76.3K Put shorts
• FIIs added 12.85K Put Long & added 12.90K Put shorts
• Pro traders added 20.91K Put Long & added 60.73K Put Short contracts

Retail participants were seen actively buying in Nifty Futures today as well as were active in Put Options
FIIs took the opportunity to book profits.
Proprietary traders although have a Net Index short position but they do have hedged their position by selling Puts.

PCR is @ 1.43 (Close to levels from where risk to stay long tends to rise)

- tomorrow could a crucial day of trade

SGX Nifty is 80 points positive as I write, however given the Candlestick pattern, Chart set up, PCR level I would be skeptical.

- If Nifty comes below the red trend line again Risk::Reward ratio to stay long would not be favorable
- in that case initial Target for the set up could be 10550 levels

Take care & safe trading...!!!

- The view expressed here is my personal view
- Use this for educational purpose
- Any decision you take you need to take responsibility for the same
- It's your hard earned money. Treat it wisely
- Trade / Invest keeping in mind your trading style, goals and objectives, time horizon & risk tolerance
- F&O trading involves risk
- Do take proper risk management measures
- Do your own analysis and consult your financial adviser if need be

Trust the above analysis was helpful which was posted last night itself...

Asian markets were up but our Nifty chart and data analysis warned us of a fall today. Based on the above analysis, I bought Nifty 10600 Put option 16 July expiry at 80 for target of 106 and recommended the same in our group in morning. Those who took the trade were rewarded handsomely. We booked profits at 105

Trading is all about preparing behind the scenes, identifying your levels, risk :: reward ratios and planning. When it comes to trading hours you should focus on just execution of your plans.

If you are interested in learning, you can message me directly or comment in the box below...

Happy trading... :-)


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