FII Derivative Data Analysis for 8 August Trade in Nifty Future

By | August 7, 2012 7:25 pm

1. FII  bought 30775  Contracts of NF ,worth 676.88 cores  with net OI increasing by 36559 contracts.

2. As Nifty Future was up by 51 points and OI has increased by 36559 contracts  means FII have added longs in Index Future, as NF has closed above the Rollover range of 5210.

3. NS closed at 5337 ,Bulls are in charge with closing above 5300 first time after July 12,Nifty today has formed double top pattern which is bearish and it gets confirmed if its unable to take the 5350 by eod tomorrow,One more thing to note is the Breadth of Stocks rising which is quiet less,Nifty is just rising with help of banks and RIL, till we do not have mid caps also performing we can see nifty coming down and fill gaps till 5200.

4. Resistance for Nifty has come up to 5350 and after that 5380  which needs to be watched closely ,Support now exists at 5286 ,Below 5260 gap filling will start till 5216 Trend is still buy on Dips till 5286 is not broken on closing basis.

5. Nifty August OI is at 2.32 cores with an addition  of 7.19  Lakh in OI, yesterday we discussed  small addition in OI suggests some big move is round the corner and today we were up by 55 points, Now we have a huge OI addition which takes out the probablity of big fall coming, Till we do not break 5286.

6. Total F&O turnover was 1.10 lakh  Cores  with total contract traded at 2.4  lakh.

7.  5400 CE saw an  addition  of 0.39  lakhs and total OI stands at 72 lakhs, Again 8.8 lakh addition in 5500 CE now its the speculative money which is coming in 5500 CE, What makes me say so is FII Option data which shows net buy of 1325 lakhs.Now 5500 CE has highest OI of 92 lakhs, FII will use this opportunity to write 5500 CE to eat the whole premium of Rs 20. 5300 CE also saw an unwinding  of 11  lakhs with total OI now standing at 45 lakhs

8. On Put side 5000 PE saw an addition  of 2.11 lakhs,immediate support of Nifty.4900-5500 PE added total of 51 lakhs in OI.5300 PE added 16 lakh in OI suggesting market participants are seeing one more attempt of nifty trading above 5300. Looking at huge addition of PE from 5100-5400 and FII net buyers of 1325 lakhs in Options suggests they have started buying puts to hedge longs. Why this figure gain more importance is because of double top formation and nifty approaching the resistance zone of 5250-80 with negative divergence in hourly charts. So dip near 5286 can come in next 2 days.

9.FII  bought 815 cores and DII bought 55  cores in cash segment.INR closed at 55.25  Live INR rate @ http://inrliverate.blogspot.in/).

10. Nifty Futures Trend Deciding level is 5288, Trend Changer at 5233 NF (Above this Level Bulls will rule Nifty/Below this levels Bears have upper hand).

Buy above 5351 Tgt 5380,5400 and 5420

Sell below 5323 Tgt 5300,5286 and 5260 (Nifty Spot Levels)

Disclaimer: These are my personal views and trade taken on these observation should be traded with strict Sl

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