NIFTY Podcast 28 Aug 2024Two trades were taken today.
1st trade was on OI line entry on 5min timeframe. It was taken with Credit Spread, because I was expecting the market to be sideways and also take advantage of decay in premium prices.
2nd trade was on Podcast levels, again with Credit Spread to take advantage of decay in premium prices.
Notes:
- Credit Spread works when market is sideways or there's 50% risk to be taken
Niftytradesetup
#NIFTY Intraday Support and Resistance Levels - 28/08/2024🔔 Nifty Update for Today:
📊 Expected Opening:
Opening Outlook: Flat
📈 Consolidation Zone:
Range: 25000 - 25050
Nifty is expected to open flat today, trading within a consolidation zone between 25000 and 25050.
📈 Potential Upside Movement:
Upside Target: 25250+
Condition: If Nifty starts trading and sustains above 25050
If Nifty breaks above 25050 and sustains that level, an upside rally could push the index towards 25250+ in today’s session.
📉 Downside Risk:
Condition: If Nifty starts trading below 25000
Any significant downside is likely only if Nifty starts trading below 25000.
Nifty anlaysis for tomorrow 28 july 2024 (Nifty Intraday Setup)Today After breaking previous day high nifty consolidated from 12 pm to 2 pm and failed to sustain at higher level.
And Nifty closed with a selling swing today.
So for tomorrow if with opening market created a selling swing then a bounce will be expected and day high break or price near high will be expected. Look for W pattern on 5 min.
(SELLING SHOULD NOT BE VERY SHARP AND BIG).
And
If Price move upside and take rejection below todays high & created a lower High (M Pattern on 5 mins.) then intraday low break will be expected.
NIFTY Podcast 26 Aug 2024Again on NIFTY, took only 1 trade with Gap up/down strategy.
1:1 target achieved right away in the second candle itself.
Notes:
- Closed early due to peer pressure of reaching or closing the targets. Next time, will mute all groups or channels to focus on the trade itself.
- There was another entry based on podcast strategy, but neither it hit the target nor it hit the stoploss. Second trade can always be debit spread or credit spread to avoid loss in the decay in the premiums of naked buying options.
#NIFTY Intraday Support and Resistance Levels - 26/08/2024🔔 Nifty Update for Today:
📈 Expected Gap Up Opening:
Opening Level: Near 24900
Primary Upside Target: 25050
In today’s session, Nifty is expected to open near the 24900 level. If the index sustains above this level after the opening, we could see a strong upside rally, potentially reaching up to 25050.
📉 Watch for Downside Risks:
Critical Support Level: 24850
Major Downside: Only expected if the index falls below 24850 during today’s session.
#nifty50 analysis for next week 26-30th Aug 2024Nifty surged nearly 300 points last week, closing at 24,823. It reached a high of 24,867 and a low of 24,522. As predicted, Nifty remained within its 25,200-23,900 range.
For the coming week, I anticipate a Nifty range of 25,500 to 24,200. Breaking these levels could trigger significant market movements. If Nifty closes above the strong resistance of 24,860 this week, it could pave the way for levels like 25,500 and 25,800 in the near future. However, Monday's opening is crucial. If it equals the daily high or reaches 24,825, bearish sentiment might return, potentially leading to support levels at 24,625, 24,486, 24,346, and 24,200 being tested.
Meanwhile, the S&P 500 closed at 5,634, up 70 points from the previous week. Interestingly, it closed right at the important Fibonacci level of 5,637. If it can close above this level for two consecutive days, the path to 5,700, 5,806, and even 6,142 could be open, potentially benefiting Indian markets as well.
How the FII-DII Tug of War Could Shape Nifty 50's Future Good Afternoon TV Family,
Summary:
The upcoming Jackson Hole meeting and potential rate cuts from the Federal Reserve, global equity markets could experience a shake-up.
In this idea, we delve into how a U.S. rate cut might trigger foreign institutional investors (FIIs) to rethink their allocations and the crucial role domestic institutional investors (DIIs) and retail flows will play in stabilizing Nifty 50.
Let's explore the dynamic between FII outflows and DII buying, and how this tug-of-war could impact the Indian equity market.
Lets Deep Dive :
1. Jackson Hole Meeting and Rate Cuts:
If the Federal Reserve cuts rates by 25-50 basis points, it would signal an accommodative stance aimed at supporting economic growth or preventing a slowdown. Lower interest rates generally boost equity markets because they reduce the cost of borrowing and make risk assets like stocks more attractive compared to bonds or cash.
US Equities: A rate cut would likely be bullish for the US stock market. Lower rates improve corporate profitability, make borrowing cheaper for consumers and businesses, and reduce the yield on bonds, encouraging investors to shift to equities. This should lift major indices like the S&P 500 and NASDAQ.
2. Impact on Global Markets:
Global Spillover: A strong rally in the US equity markets often leads to positive sentiment spilling over to global markets. Optimism in the US can create a "risk-on" environment where investors globally are more willing to take risks in equities and emerging markets.
Currency Impact: A rate cut might weaken the US dollar, which could benefit emerging market currencies, including the Indian rupee. A weaker dollar generally supports emerging markets by making their debt cheaper to service and boosting exports.
3. Foreign Institutional Investors (FII) and Domestic Institutional Investors (DII) Impact:
Capital Reallocation: A rate cut in the US could lead to a reallocation of capital by foreign institutional investors (FIIs). If US markets become more attractive due to lower rates and expectations of better returns, FIIs could redirect funds from emerging markets like India back to the US.
Risk of FII Outflows: Historically, when the US markets become more attractive, FIIs tend to pull capital from riskier emerging markets to take advantage of the safer and more promising environment at home. If FIIs reduce their exposure to India, we could see short-term pressure on Indian equity markets.
FIIs vs. DIIs: The Balancing Act
FII Dominance: Historically, FIIs have had a significant impact on Indian equity markets due to their sheer scale. Large-scale selling by FIIs can cause downward pressure on the markets, and in periods of uncertainty or risk aversion, they often pull out capital quickly.
DII Counterbalance: On the flip side, DIIs (including mutual funds, insurance companies, pension funds, etc.) have grown stronger in recent years. While they may not match the FIIs in volume, their growing influence means they can absorb some of the selling pressure. In fact, DIIs often act as stabilizers when FIIs sell aggressively.
4. DII Firepower and Their Role
DIIs’ Buying Capacity: DIIs have been steadily increasing their presence in the market, supported by growing retail participation via mutual funds and SIP (Systematic Investment Plan) inflows. Monthly SIP inflows in India have consistently been hitting record levels (e.g., over ₹15,000 crores). This gives DIIs a significant pool of funds to deploy, which can offset some of the FII selling pressure.
Insurance and Pension Funds: In addition to mutual funds, large domestic players like insurance companies (e.g., LIC) and pension funds have deep pockets and tend to be more long-term focused. They can step in to support the market during periods of FII outflows.
5. FII Selling vs. DII Buying: Historical Context
In recent years, there have been several instances where FIIs have sold heavily, but DIIs have stepped in to absorb some of the selling pressure. For example, during periods of global uncertainty (e.g., the COVID-19 pandemic or geopolitical tensions), DIIs have been active buyers when FIIs were selling.
However, the degree of balance between FIIs and DIIs is critical. If FIIs engage in a prolonged or aggressive selling spree, it could overwhelm the DIIs' ability to absorb all the outflows. In such cases, the market could still see a downward correction, albeit potentially less severe due to DII intervention.
6. Retail Investor Participation
Growing Retail Participation: While individual retail investors may not have the power to single-handedly stop a market decline, their cumulative impact through mutual funds and SIPs is growing significantly. Retail participation has become more pronounced in the Indian markets, with a steady flow of domestic savings being funneled into equities.
SIP Flows: Monthly SIP inflows have created a steady and predictable stream of liquidity for the market. Even during periods of FII outflows, DIIs can rely on these inflows to buy equities and stabilize the market. While this might not entirely counterbalance FII selling, it provides consistent support and can cushion downside moves.
7. Role of Mutual Funds and SIPs
Mutual Funds and SIPs: With SIP flows providing a reliable source of funds, DIIs can manage their buying strategies more effectively, especially during periods of volatility. This has been one of the reasons why the Indian markets have remained relatively resilient in the face of global shocks.
SIP Inflows’ Resilience: SIPs are typically long-term, driven by retail investors who are less likely to pull out during short-term corrections. This means that mutual funds have a steady flow of capital to deploy, which can help support the market over time, even if FIIs sell off in the short term.
8. Indian Market Reaction:
Short-Term Negative Impact: The Indian markets might see a negative reaction in the short term, particularly due to potential FII outflows and global investors reallocating capital to US equities(not a must but a possibility). However, this will depend on the scale of the US market rally and how much FII sentiment is swayed by the rate cut.
Longer-Term Outlook: In the longer term, India remains a strong emerging market story with robust growth potential. So, while there might be short-term downside due to FII outflows, domestic factors like earnings growth, reforms, and economic resilience could offset the impact over time.
9. Potential Limits of DII Support
Magnitude of FII Selling: If FIIs engage in heavy and sustained selling (e.g., billions of dollars in outflows), DIIs may not have the capacity to fully absorb the impact. In such cases, the market would likely see a correction, and DIIs would focus on selectively buying stocks where they see long-term value.
Global and Domestic Factors: DIIs’ ability to support the market also depends on the broader domestic economy, liquidity conditions, and global sentiment. For instance, if global markets are in turmoil, even DIIs might become more cautious, limiting their ability to counteract FII outflows.
10.Other Considerations:
Sectoral Impact: Some sectors in the Indian market, such as IT services, might benefit from a weaker US dollar and stronger US growth prospects, while rate-sensitive sectors (like financials) could face pressure from FII outflows.
Central Bank Response: The RBI may also factor in the Fed’s decision when considering its own interest rate policy. If FIIs withdraw capital, the RBI might need to adjust its stance to support the rupee and maintain financial stability.
11. Sectoral Impact
Different sectors of the Indian economy could experience varying effects based on these developments:
IT Sector: Indian IT companies could benefit from a weaker dollar, as a strong US growth outlook would drive demand for IT services and outsourcing, positively impacting the sector's earnings.
Financials: Rate-sensitive sectors like financials could face short-term pressure due to FII outflows, but DIIs and retail inflows could stabilize them in the medium to long term.
Export-Oriented Sectors: Export-driven sectors such as pharmaceuticals, textiles, and automobiles could see a boost from a stronger rupee and weaker dollar, enhancing their competitiveness globally.
Summary & Conclusion:
A. Short-Term Risk: A Fed rate cut could lead to short-term selling pressure on Indian markets due to FII outflows, as investors chase better returns in the US.
B. Global Risk-On Sentiment: However, if global sentiment improves significantly, emerging markets might benefit indirectly from stronger global growth prospects.
C. Domestic Strength: India’s strong domestic fundamentals should eventually provide support, even if there is an initial dip due to global factors.
D. DIIs can provide significant support to the market and act as a counterbalance to FII selling, especially due to consistent retail inflows via mutual funds and SIPs.
However, the extent to which DIIs can offset FII outflows depends on the magnitude of the FII selling. In a severe selling spree, even strong DII buying might not fully prevent a market downturn, though it could cushion the impact.
E. Retail investors, through mutual funds and SIPs, have become a crucial source of liquidity, helping DIIs stabilize the market, but the balance between FII outflows and DII inflows is key to determining market direction.
Thank you for reading,
Now let's just brush up on technical's :
1. If the index moves up which is only possible above 24900 zone then we have : 25460 to 25560 which is immediate upside levels, above that it might move further upside as per chart around 29K.
2. If breaks down and starts declining then : 24350 to 24400 zone should be a immediate support, if breaks below then 24180,23630,23180 worst case will be
22730.
Let's see how this all works out. Once again Thank you for taking your time to read. If I am wrong any where please do leave a comment to correct me.
PS: The above idea and thoughts are purely educational and do not consist of any financial advise or investment. Please do consult your financial advisor for any investment.
Nifty Prediction for Tomorrow: Levels for 23 August, 2024Nifty Prediction for Tomorrow: Levels for 23 August, 2024
Sideways today! But, all CE buying side targets have been met and a small position of the CE monthly trade is still open with open target.
Trailing Stoploss : 24,687
Resistance: NONE, all CE side targets met
If the price crosses and closes below the Risological Trendline, I will be looking at buying PE side position. Till then, Iam gonna enjoy the CE side profit.
Good luck
NIFTY Podcast 22 Aug 2024Total 2 trades were taken today.
1st trade was based on Gapup/down strategy with R:R of 1. Although the outcome wasn't in the trade's favor, so closed along with the second trade.
2nd trade was on Podcast levels, the OI data was negative and there was huge Call writer on 28500 CE side, so took the trade with R:R of 1. Closed the trade with profit of only 3 points, but based on position sizing had taken with 4 lots.
Notes:
- Instead of Naked buying, Credit Spread would have worked in the favor for the 1st trade as today was the expiry of Nifty.
#NIFTY Intraday Support and Resistance Levels - 22/08/2024🔔 Nifty Update for Today:
📈 Gap-Up Opening Expected:
Expected Opening Level: Near 24850
Key Bullish Level: 24850
Potential Upside Target: 25000
Nifty is expected to open with a gap up near the 24850 level today. If the index sustains above this level after opening, a strong upside rally could push it towards the 25000 mark during the session.
📉 Watch for Downside Risks:
Critical Reversal Level: 24800
Important Support Level: 24650
However, if Nifty starts trading below 24800, downside movement may be possible. The 24650 level will serve as an important support in today’s session.
NIFTY Podcast 21 Aug 2024Altogether, three trades setup were there today for NIFTY, But I was able to take only the first two.
Notes:
- The third trade was highly risky, as the OI Data was just positive in small numbers, and on the other side BANK NIFTY OI Data was negative.
- Today should've opted for Credit Spread/Debit Spread on the second trade, as there was theta decay in the premium although the expiry is next day
#NIFTY Intraday Support and Resistance Levels - 21/08/2024🔔 Nifty Update for Today:
📈 Gap-Up Opening Expected:
Expected Opening Level: Near 24700
Key Level: 24700
Potential Upside Target: 24850
Nifty is expected to open with a gap up near the 24700 level today. If the index sustains above this level after opening, we could witness a strong upside rally, potentially reaching up to 24850 during the session.
📉 Watch for Downside Risks:
Critical Reversal Level: 24650
Support Level: 24500
However, if Nifty starts trading below 24650, downside movement may occur. The 24500 level will serve as an important support in today’s session.
NIFTY INTRADAY LEVELS FOR 21/08/2024BUY ABOVE - 24730
SL - 24660
TARGETS - 24780,24850,24900
SELL BELOW - 24660
SL - 24730
TARGETS - 24600,24530,24460
NO TRADE ZONE - 24660 to 24730
Previous Day High - 24730
Previous Day Low - 24600
Based on price action major support & resistance's are here, the red lines acts as resistances, the green lines acts as supports. If the price breaks the support/resistance, it will move to the next support/resistance line. White lines indicates previous day high & low, high acts as a resistance & low acts as a support for next day.
Trendlines are also significant to price action. If the price is above/below the trendlines, can expect an UP/DOWN with aggressive move.
Please NOTE: this levels are for intraday trading only.
Disclaimer - All information on this page is for educational purposes only,
we are not SEBI Registered, Please consult a SEBI registered financial advisor for your financial matters before investing And taking any decision. We are not responsible for any profit/loss you made.
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HAPPY TRADING 👍
#NIFTY Intraday Support and Resistance Levels - 20/08/2024Today will be slightly gap up opening in nifty. If nifty starts trading above 24650 level then possible upside rally upto 24850+ in today's session. Similarly if it's starts trading below 24500 then downside fall expected. 24500-24650 will act as a consolidation zone in today's session. Any strong movement only expected breakout of this zone.
#Nifty50 analysis for upcoming week 19-23rd Aug 2024#Nifty 50 index concluded the week on a positive note, climbing 174 points to settle at 24,541. The index danced within the anticipated 25,150-23,800 range, as predicted in the previous analysis. For the upcoming week, a similar trajectory is expected, confined between 25,200 and 23,900 . A breakout from either end could ignite significant volatility.
The broader bullish trend persists on both weekly and monthly charts, offering a comforting backdrop. A decisive daily close above 24,700 would be a key indicator, potentially propelling the Nifty towards 24,860, 24,950, or even the all-time high of 25,078. However, breaching the 25,200 level appears challenging at this juncture.
The S&P 500 also mirrored a positive week, gaining 210 points to close at 5,554. Intriguingly, this settlement is near the July 26th high, a level that previously triggered selling pressure. A sustained position above 5,570 could pave the way for a move towards 5,620 or 5,637. A consecutive close above the crucial Fibonacci level of 5,637 would open doors to 5,700, 5,806, and ultimately, 6,142, potentially boosting Indian equities.
The bottom line remains unchanged: as long as the Nifty holds above the 24,000 mark, the bullish outlook prevails.
#NIFTY Intraday Support and Resistance Levels - 16/08/2024Today expected gap up opening in nifty near 24350 level. After opening if nifty starts trading above 24350 level then expected upside rally upto 24500 level. Downside possible upto 24100 if nifty starts trading below 24300 level. This can be expected for more 100-200 points if give breakdown of 24100 level in today's session.
#NIFTY Intraday Support and Resistance Levels - 14/08/2024A slightly gap-up opening is possible for Nifty. If Nifty starts trading below the 24100 level, a strong downside move down to 23900 could be expected in today’s session. Any upside rally is anticipated only if Nifty trades above the 24200 level. The 24100–24200 range is expected to be a consolidation zone for Nifty during today’s session.