Nifty CAS Shock, Bold Elliott Wave prediction with Volume profile, Open Interest

Nifty Options movement post CAS (Closing Auction Session) has become extremely volatile especially on the expiry day.

Options near to the Spot prices start spiking up in anticipation of an upward close post 2.30 pm. This can be seen as opportunity for risk takers but can be too risky if positions are not managed well.

It is imperative to combine Options trading with Elliott wave, Neo wave and Volume profile techniques for bold forecasting.

Neo wave is advanced of Elliott wave that helps to catch reversal when majority of the traders can get trapped. We have been able to forecast the levels of 24728 when prices were near 23640 levels.

Prices after the sharp rally is showing short term correction in form of Zigzag pattern which is in matured stages of down move. Break above 24480 will confirm the reversal back on upside in the form of next wave higher that can take prices towards 24780 followed by 25100 levels. Only a few will be expecting this but Elliott wave – Neo wave bold forecast is suggesting bears can get trapped at lower levels. On downside break below 24220 can extend the deeper downside move but that will only delay possible upside reversal.

Nifty 55 Days time cycle is also due on 14^th August which suggests Time is getting ready to turn back in a week’s time back on upside.

The next chart of Nifty OI profile shows where are big players building their positions. We can see that 24500 has highest short call positions. So break above 24480 – 24520 will result into short covering thereby accelerating upside movement. For trading options it is important to see key reversal areas.

This method helps to understand major accumulation or distribution phase of the market. Area with highest volume is known as Volume Point of Control (VPOC). The same is near 24650 (futures) so around 24550 on spot. This along with OI data suggests that for bulls crossing above 24520 – 24550 is going to be crucial for major upside momentum.

In a nutshell, combination of advanced Elliott wave, Neo wave with OI profile, Volume & Time analysis can be a powerful combination for bold forecast. Prices are now in short term correction and post its completion major up move for targets of 24780 – 25100 will resume with supports near 24220 levels.

If you have any questions, comment below!