***TechnicalsNifty is in terminal phase of downtrend and now it seems that nifty will trade sideways in 3050-3500 range for some time.
Nifty is in process of intermediate bottom formation.
So far bottom is formed at 3047.
******Trading system for NIFTY
3d LMA- 3074, 3d HMA- 3276.
3d SMA- 3155, 8d SMA- 3291, 34d SMA- 3917.
~BIAS – neutral, MOMENTUM – negative, TREND – negative.
~STRATEGY-no new call generated. (Hold shorts with closing stop at 3276)
~stoploss for shorts at 3276.It is time to tighten your stop if you are short as bias turned neutral.
~stoploss for longs at 3074.
***Derivatives (October 21)
-Nifty (October) future premium decreased to 7 points and around 15 lakh shares were added in open interest with decrease in the cost of carry, indicating new shorts at higher levels.
-Nifty call option shed 10.5 lakh shares in open interest, whereas put option add 27.5 lakh shares in open interest. Thus open interest put-call ratio increased to 0.78.
-Implied volatility has decreased by 1000 points which indicate stability in the coming days.
***Fund flow (October 20)
~FIIs net in Index fut. + 461 cr, FIIs net in Stock Fut. + 219 cr
~FIIs in Cash Market - 840 cr, Mut Funds in Cash Market + 219 cr
***total fund flow + 59 cr today & nifty was up by 48 points.
*** So far net fund flow of - 9290 cr in October series. (Nifty is also down in October series).
***Past fund flow
-8071 cr in June series (-520),+6474 cr in July series (+18), -6641 cr in August series (-119), -6903 cr in September series (-104)& closed at 4110.(-15141 cr from May closing of 4835)
Happy trading and investing.
-Dr.Jignesh Shah
