Trading Strategy for 03 April 2014.

Continue 8^th trading session that Market made New High.

Yesterday Open Interest increase in Nifty 6700 Put increases more than 13 Lakhs. This is highest increase in open interest in any call or put yesterday. So market respect this value in near term and it is a major support for market. So bear get active only below Nifty 6700 level.

Market direction remain in +ve side with choppy move.  

In Intraday, better to buy above 6802 for the target of 6825, Sell Below 6776 for the Target of 6746.

Put Call Ration: 0.98

Overnight US Market close in Green Dow 16,573 (+40.39) (+0.24%)

Asian Market in Green ………

SGX NIIFTY 6807(+11)  

OPEN INTEREST DEVELOPMENT IN NIFTY OPTION (CALL / PUT)   

                             

INDIA VIX 

A falling VIX means that there is lower uncertainty and market confidence is high and most of the time direction of trend is clear. A rising VIX shows there is a lot of uncertainty in the markets and price action is expected to be very volatile or sensitive in the coming days.

I will recommend to trade only when the VIX is moving lower and a level below 20 is ok for trading. But if the VIX goes above 20 it means the chances of reversal in the short term trend is very high and large sudden moves could be expected.

 FII’s Activity 

FII Activity 02-APRIL-2014 

Cash Segment(Provisional):

FII’s                :  +594.67 Crores

DII’s               :   - 471.78 Crores

Derivative Segment(Provisional):

Index Futures              : +225.04 Crores

Index Options             :  +730.58 Crores

Stock Futures             : +406.95 Crores

Stock Options            : +11.42 Crores

Data is taken from the NSE website. 

MECHANICAL TRADER SIGNAL
UPDATED ON 02-April-14, 7:00pm ( START ON 28.03.14)
NSE INDEX FEB FUTURE INDIA TRENDS
	CURRENT     01-April-14	DAILY SIGNAL GENERATED				TODAY'S PROFIT /LOSS	NET +/-        (FROM 28-Mar-14)	HOURLY SIGNAL GENERATED				TODAY'S PROFIT /LOSS	NET +/- (FROM 28-Mar-14)
		DATE	Position	LEVEL	S/L			DATE	Position	LEVEL	S/L
NIFTY FUT	6790	28.03.14	BUY	6705	6690	34	73	01.04.14	BUY	6747	6758	34	51
BANK NIFTY FUT	12805	02.04.14	BUY	12655	12580	150	-20	02.04.14	BUY	12738	12677	67	51
OPEN POSITION
NIFTY FUT	6756	28.03.14	BUY	6705	6640			01.04.14	BUY	6747	6705
BANK NIFTY FUT	12805	02.04.14	BUY	12655	12580			02.04.14	BUY	12738	12677
TODAY'S TRADE (02-APR-14)
NIFTY FUT	6756	NO TRADE						NO TRADE
BANK NIFTY FUT	12805	02.04.14	BUY	12655	12580	150		02.04.14	BUY	12738	12677	67