Nifty Futures Trading Part 2 (Positional)

[orderflow13]

 

[mitasatyajit]

sat da, 2 different resistance in 1st post ( december resistance 23075, 12780
)n two monthly charts of nifty ? can you pleas explain ?

Thank u for ur in depth observation. It was my mistake that I have not posted the resistance 2832 in my first chart. The resistance at 2780 comes after extention of the line after joining previous two month's low.

So there are three resistances not two.

1. 3075 - downtrend line from sept - oct highs.

2. 2832 - parallal line of the line joining jan - sept highs and passing through jan low.

3. 2780 - uptrend line from oct - nov lows.

Support : -

1. 2625 - downtrend line from oct - nov highs.

 

[mitasatyajit]

 

[S S]

 

[devangan123]

SS

Can you please post chart in lighter back ground , things are not visible properly in black back ground

 

[orderflow13]

Note o.i. pcr at bottom of chart, which rose today, interestingly it was down all day in intra-day trading and jump on closing hours.Which indicates itself lot of shorts been trapped today, though volumes today were very very dismal so any predictions can be misleading.However chart mostly looks neutral to bullish.

 

[orderflow13]

Fear index should drop down that line, so bulls will be reassure.Historically VIX readings above 40 are considered abnormal.So if we want to see the reversal in long term trend vix below 40 along with o.i. pcr consistently trading above reading 1 will give us early signs.

 

[coolboy007]

SEBI ALLOWS CROSS MARGINING

Market regulator Sebi, or Securities Exchange Board of India, said positions in cash and futures would be considered for cross margining, reports CNBC-TV18. Cross margining would be allowed for all market participants to the extent of positions offsetting in cash and F&O. The basket of positions in index stocks and futures are also eligible for cross margining, it added.

The circular came after the market closed. These cross margining norms are already applicable for institutional investors and now they are allowed for non-institutional investors as well. Essentially market participants believe that this would help in the arbitrage volumes picking up which of late have dried up.

If you are going for a basket buy and you buy a set of Nifty stocks and you sell Nifty futures as a hedge, in that case also you will have cross-margin benefits so you dont have to pay margins on both sides. There is a third angle to it, if you already have a stock in your portfolio but your view on the stock is negative for the short term and you want to short sell that in the futures side you can do that and your stock, which is already there in the portfolio would be taken as a margin.

The one angle about arbitrage is for institutional investors: the volumes have been low of late not because of any margining but because of exchange rate fluctuations and you have to take cover for exchange rate as well and with the exchange rate now fluctuating so badly and thats the reason why the volumes have been hit but on the domestic side there could be a bit of a pick up.

COURTESY : MONEYCONTROl.

 

[coolboy007]

Its too difficult to take positional trades these days.
Stochs has fallen sharply around 20 points which is indeed bearish Macd is now giving bear signals down 4 points frm yest close. Adx is giving sell. RSI 39 is good though still not oversold. The pattern today is HAMMER i guess which is bullish. So more bearish than bullish signals. Maybe the rallies will fizzle out as dow is up we may have a gap up. Awww , Gap up gap up , will it sustain???

Ok frnds bye for 1 week will now see u on tuesday!!! Goin to himachal.

 

[columbus]

Ok frnds bye for 1 week will now see u on tuesday!!! Goin to himachal.

You are already COOL.What is the necessity for you to go to HIMAchal.

CHAL ,anyway happy holidaying.