The BNF OI puzzle, what I think happened. This is post mortem analysis 😀

COi was going up like crazy since early March, positions were being created in far month ( go thru my previous tweets) Image
OI = net shorts = net longs. So informed traders were taking a huge position expecting a parabolic move ( we did not know whether up or down). As of now, my guess is that the whole position was a long position. Someone had the info of the rate cut
You can see that the positions were cut hugely on 1st April. What happened on 1st April ?

This happened 👇👇 Image
If the rollback did not happen ( due to whatever reason), BNF would have gapped up by 1000-1500 points and the shorts would have been killed, and longs would have been laughing all the way to the bank. See the cut on 1st April Image
But since the rollback did happen, what we now had were trapped longs. that's why we are seeing any upmove getting sold as longs get rid of their positions. COI now is down to normal levels as you can see Image
My guess is there are still some longs trapped, so as long we do not close above 33600 chances are we will see one more spike and climax selling on the downside. There is a strong supply in the 33400-33600 zone. the 33600 figure is quantitative Image
End of day view :
This is what I am expecting. Will chance my bearish stance if we close > 33600 Image
*change

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More from @SubhadipNandy16

16 Apr
Awesome, you guys have now started doing the exact trades I do 😀 Image
Was already in some 31500PE sells based on this, those too depreciated sharply when BNF went up. A neat 55 points there too ImageImage
Had a loss trade earlier Image
Read 4 tweets
15 Apr
Ok, here goes the story.Morning received this message Image
Like an idiot, I fell into the trap. Clicking the link took me to an official looking webpage of twitter. Asked for mobile authentication ( i had 2FA on) Image
This is handle which did this, looked like exact Twitter Support handle. ( now changed after I reported this to twitter ). Had a blue tick , verified mark ImageImage
Read 7 tweets
12 Apr
There was a slight short buildup on friday, but what's alarming in the COI build-up today till now .
Get ready for a wild ride.... ImageImage
There are some markets you trade aggressively and some markets you watch. This is a market to watch for next 2 hours for me. Will be interested to see if this COI is carried into closing
And those who are asking me up or down, I honestly don't know. I was playing this for a 31k target, once that has been met will have to reassess post closing. Intraday might take small trades only
Read 4 tweets
7 Apr
In technical analysis, majority of the patterns were first observed visually and then the rules made. Observing this interesting phenomenon on BNF over the past one month.
Any strong up day on BNF is immediately followed by a gap down open from the previous closing Image
So any upmove /upday is almost never having any follow-up buying the next day. Unless this pattern gets broken by 1-3 days of upmove after a strong closing, BNF looks extremely bearish. The logic of BNF seems to be " will kick your ass if you take bullish positions overnight" 😀
Jokes apart, if you want to understand the logical basis of patterns, this book is still the best :
Technical analysis of stock trends by Edwards and Magee

quantgym.biz/post/the-only-…
Read 5 tweets

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