Nifty: Trade data analysis, Chart set up and co-relation

12 thg 4, 2021

Nifty

Derivative data analysis for trade day April 9, 2021

Futures Data
- Retail participants added 10.97K Index Futures Long Contracts & exited 434 Index Futures Short contracts
- FIIs added 990 Index Futures Long Contracts and added 6.56 K Index Futures Short Contracts
- Proprietary traders added 1.47K Index Futures Long contracts and added 5.98K Index Futures Short contracts

Call Option
- Retail participants added 2.71 Lakhs Call Long Contracts & added 2.76 Lakh Call Short contracts
- FIIs added 38.86 K Call Long Contracts and added 37.75 K Call Short Contracts
- Proprietary traders added 1.04 Lakh Call Long contracts and added 1.01 Lakh Call Short contracts

Put Option
- Retail participants added 1.77 Lakhs Put Long Contracts & added 2.12 Lakhs Put Short contracts
- FIIs added 34.04 K Put Long Contracts and added 18.61 K Put Short Contracts
- Proprietary traders added 1.01 Lakh Put Long contracts and added 82.87 K Put Short contracts

At important technical resistance levels, We observe retail traders going Long aggressively and on the other hand FIIs and Proprietary traders going short in index futures.

On the Options front, we observe Retail traders being Net neutral in Call Options and Net Put Short
FIIs & Proprietary traders were Net neutral in Calls and were Net Put buyers

Today, we see Nifty dropping 400 points... and the result is in front of us who the winner of the set up is...

If you have been following me, you would realize I have been highlighting the importance of resistance at 14882. On an intraday basis, it did breach it and traded higher but on a closing basis it was respected to perfection. Our strategy to sell 14900 Call option had factored in this kind of risk and we were well positioned and came out making profits in the trade

Prior to this we also suggested a strategy to go short in 15200 Call option for May series in the region of 250-300.

Our strategy to sell 15200 Call option for May series in the region of 250-300 gave ample opportunity to enter the trade . It has made a low of 143 so far and is now trading at 150 and is in profit


Going forward, On Technical Analysis front

- it has opened below 50 day EMA
- broken the yellow turned dotted red line
- at the important blue Lakshman Rekha line ( level identified since February 2021 and has been massively respected)
- with multiple re-test of Laxmam Rekha line, is it getting weaker and would it break...???

Only time will tell... All these points have been discussed in my previous Nifty posts which you can go through...

This is not a recommendation now. We are reaping the rewards of the hard work done earlier.

This post is more for you to understand

- the importance of doing your homework,
- analyzing profit potential and risk involved before you enter a trade &
- preparing a trading plan that suits you and factors in the risk....
- and more importantly be in control of the situation and be in better frame of mind.

If you want to improve as a trader, first thing you need to do is ensure your mind is relaxed.
And to be relaxed you need to prepare a good trading plan.

Remember, chances of you making a better trading decision would increase when you do your homework and when you have the right mindset.

Best wishes....!!!

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