INDIAN SHARE MARKET: Nifty Futures Jan Expiry Trading Stratregy

Nifty Futures Jan Expiry Trading Stratregy

1. FIIs bought 10211 Contracts of Index Future (NSE Nifty Futures and Bank Nifty Futures combined),worth 333.71 cores with net Open Interest increasing by 44721 contracts. How to Build Self Discipline in trading?

2. As CNX Nifty Future was up by 11 points with Open Interest in Index Futures increasing by 44721 so FIIs again went long in Nifty and Bank Nifty. Traders do remember Mini Nifty Future will stop trading from tommrow and no rollovers can be made in Mini Nifty.

3. NS closed at 6056 after making high of 6072 and low of 6044.No follow up move was seen in Nifty after yesterday’s RBI cut in interest rates.Tomorrow we have the January month Expiry,Nifty is up just 2.5% for Jan series with 21110 cores buying in cash by FII which shows supply pressure coming at higher levels.CNX Mid cap is down 2% and Nifty Junior is down 1.5% for the Jan series so eventhough Nifty has given positive return broader market has felt the brunt of bears. Although sensex is just 5% away from making a life high but many favorite traders stock are still down 90-95% from the highs seen in 2007 so retail stock traders are still in pain and still avoiding stock market. Nifty is consolidating in range of 6100-6007 from past 9 trading sessions and i expect expiry also to happen in this range only. We have Monthly closing tommrow and Nifty has reacted from the Monthly chart trendline at 6120 .

4. Resistance for Nifty has come up to 6072 and 6090 which needs to be watched closely ,Support now exists at 6041 and 6022.Trend is Sell on Rise till 6100 is not broken on closing basis.

5. Nifty Future January Open Interest Volume is at 0.88 cores with liquidation of 6.5 lakh in Open Interest, liquidation of long in Nifty future.Cost of Carry of Nifty Future increased to to 25 as expiry is just 1 day away.Rollovers have started in Nifty Future and 6.5 lakhs got rollovered to Feb Series and 10 lakhs of fresh addition.We have seen 72 lakh addition in range of 6014-6120 as of now.

6. Total Future & Option trading volume at 1.68 lakh Cores with total contract traded at 1.52 lakh, PCR (Put to Call Ratio) at 0.91 and VIX at 14.38. Again a dull day in Nifty futures and stock specific action.

7. 6200 Call Option is having highest Open Interest of 1.21 lakhs with liquidation of 6.6 lakhs in Open Interest, 6100 Nifty CE is having second highest OI at 7.98 lakh liquidation of 3.8 lakhs in OI,with Option premium at Rs 6 we discussed yesterday short got added in 6100 CE ,6000 CE saw liquidation of 3.3 lakhs in OI .5700-6300 Call Options liquidated 20 lakhs in OI. Bulls are unable to break 6100 and Bear