Nifty opened with a small gap down, but immediately went to test PDH and was trading above it for most part of the day. last one and half hour saw some selling pressure which took Nifty below PDH and also closed below its VAH and POC, which is not a good sign. Tomorrow being a "news/event" day; Bank nifty could have some wild swings, so trading in NIFTY needs to be a cautious one.
VIX range --- 8799 -- 8068
Today was second trading day of this new series and tomorrow is the third day, which is also an event day, so more clarity should emerge from tomorrow's EOD report. As of now, lets see how FII and others are positioning themselves.
FII -- After a huge buying on friday, today they continued to buy Index future and also entered some shorts, so they are expecting two way movement mostly. Cleverly they have sold options both sides.
Clients -- After huge short on friday, today they have added small longs to Index futures along with very negligible shorts. So they are expecting small rise big fall. Cleverly they too have sold both sides.
DII -- Friday they have added longs, today they have covered some of it and added shorts in Index futures.
Pro -- Addition seen on both sides in index futures but they are clearly seeing a downside movement based on their shorts calls.
Looks like all the parties are clueless still on the direction nifty can take tomorrow. So till the event is over and clear direction is seen, positional traders need to be cautious. Intra-day traders can use this volatility to their advantage with proper money management rules.
Happy Trading.
VIX range --- 8799 -- 8068
Today was second trading day of this new series and tomorrow is the third day, which is also an event day, so more clarity should emerge from tomorrow's EOD report. As of now, lets see how FII and others are positioning themselves.
FII -- After a huge buying on friday, today they continued to buy Index future and also entered some shorts, so they are expecting two way movement mostly. Cleverly they have sold options both sides.
Clients -- After huge short on friday, today they have added small longs to Index futures along with very negligible shorts. So they are expecting small rise big fall. Cleverly they too have sold both sides.
DII -- Friday they have added longs, today they have covered some of it and added shorts in Index futures.
Pro -- Addition seen on both sides in index futures but they are clearly seeing a downside movement based on their shorts calls.
Looks like all the parties are clueless still on the direction nifty can take tomorrow. So till the event is over and clear direction is seen, positional traders need to be cautious. Intra-day traders can use this volatility to their advantage with proper money management rules.
Happy Trading.
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