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Nifty analysis – 17 May | Nifty intraday analysis | Price action trading

Nifty analysis – 17 May: Current outlook

  • Seems like the local bottom is in. We are in for a relief rally.
  • The previous supply zone at 16k-16.1k seems to be getting violated. If the price sustains above 16100, expect further up move in the coming days.
  • The next supply zone lies somewhere near 16150-16200.
  • The LTF bias is bullish, all the dips seem like a buying opportunity today.
Nifty analysis – 17 May

Nifty analysis – 17 May | Update (12:02 pm)

Nifty OI data interpretation:

Observation: Call shorts closing out their positions. These are trapped shorts that are fueling the up move by their aggressive short covering.

Logic: They are anticipating a higher price i.e. the bias is shifting to bullish.

Observation: Put shorts are adding into their positions.

Logic: They are anticipating a higher price i.e. the bias is shifting to bullish.

This only solidifies my bias that a local bottom has been formed in Nifty and we are heading for a relief rally. I don’t use OI data on a standalone basis because it’s useless.

Nifty analysis – 17 May | Update (12:32 pm)

Currently holding these positions. Like I always say, the PnL doesn’t matter. This is just to show that I have skin in the game, I don’t only post charts.

  • BNF-NF pair trade converted into NF long. Now, it’s hedged long because I may carry it overnight. Not really sure at the moment.
  • Kotak Bank- HDFC Bank pair trade converted into Reliance-Tata Consumer pair trade.
  • All the positions are in futures. Therefore, the MTM is giving me anxiety because I am not used to such big positions.

Let’s see how these pan out, I may close out these positions altogether. It all depends on my mood.

Nifty analysis – 17 May | Update (01:00 pm)

Closed out all the positions. I was getting impatient and fearful. A trader needs a clear mind and a great deal of control over emotions to carry overnight trades. Unfortunately, I am lacking these at the moment. No shame in accepting that.

Outcome: +8k for that day. ROI = 1.5%

Update EOD:

The price has invalidated all the supply zones. Today was a pure trending day, controlled by OTF traders.

Important links:

Rajat Kumar Singh
An engineer turned trader who is passionate about creating clean and insightful charts. Rajat works as a Community Manager at TradingView, a popular charting platform with over 50 Million active users. He started this blog with the aim to educate fellow traders offering them valuable insights on different aspects of trading. Join him in his journey to becoming a better trader! ❤️

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