FII F&O Analysis for 6 Feb Nifty Future Trading

1. FIIs sold 22273 Contracts of Index Future (NSE Nifty Futures and Bank Nifty Futures combined),worth 663 cores with net Open Interest increasing by 6345 contracts. Misconceptions Of Stock Trading Part -I

2. As CNX Nifty Future was down  by 21  points with Open Interest in Index Futures increasing by 6345, FII have created fresh shorts in Nifty and Bank Nifty future.Nifty Future has given 100 points profit from trend changer level.Shorts which got intitated on 1 Feb as per trend changer levels.

3. NS closed at 5957 after opening gap down on weak global cues making high of 5970 and low of 5946.Nifty made the low near our second support of 5945 As discussed yesterday Now Nifty is near 5981 which is important support failure to held it decline till 5950-5930 is on cards from where the pullback rally can start, Its 7 days of straight decline in Nifty. This is what we discussed yesterday and Nifty made a low of 5946 with 8 straight day of decline,5946 is also trendline support from low of 4770 in June 2012 so bounce back should be expected. Readers are advised to do profit booking in shorts. Mid Caps again bore the brunt of todays fall with traders favourite bombay dyeing, Jain Irrigation, Jubilant foods falling between 5-9%.

 

 

4. Resistance for Nifty has come up to 5970 and 5981  which needs to be watched closely ,Support now exists at 5946 and 5920.Trend is Sell on Rise till 6026 is not broken on closing basis.

5. Nifty Future Feb Open Interest Volume is at 1.30 cores with liquidation of  1.3  lakh in Open Interest Cost of Carry of Nifty Future increased sharply to 4.8 showing shorts covering at lower levels.Nifty Future premium increased  to 18 points so bulls are expecting some bounceback from trend line support level at 5945.

6. Total Future & Option trading volume at 0.92 lakh Cores with total contract traded  at 1.52 lakh  , PCR (Put to Call Ratio) at 0.90  and VIX at 14.61.Only saving grace from Bulls is decline was on lower volumes in cash market than that on Tuesday.

7. 6100 Call Option is having highest Open Interest of 58  lakhs with addition of  5.7 lakhs in Open Interest premium at 30, 6200 Nifty CE  is having second highest OI at 48 lakh  addition  of  2.5 lakhs in OI,6000 CE also added 6.3lakhs in OI so Bears have started building position in 6000 CE  .5700-6300 Call Options added 1.9 lakhs in OI.  Huge OI reduction was seen in 6300 CE as FII covered 15 lakhs in 6300 CE

8. 5900 Put Option is having highest  Open Interest of  51 lakhs with addition of 9.6 lakhs in OI so still Bulls are forming new base at 5900 PE, 6000 PE writers have started  liquidating shorts as OI was down by 4.7 lakhs . 5700 PE  again added 5.9 lakhs with Option premium at Rs 11.4,so 5700 PE needs to be watched closely as it has added 43 lakhs in 3 days.5700-6300 Put Options added 12.8  lakhs in OI.

9. FIIs buying in Equity in tune of 489 cores and DII sold 938 cores in cash segment,INR closed at 53.34 Live INR rate @ http://inrliverate.blogspot.in/).

10. Nifty Futures Trend Deciding level is 5999(For Intraday Traders), Trend Changer at 6031 NF(For Positional Traders). (Above this Level Bulls will rule Nifty/Below this levels Bears have upper hand). Bank Nifty Future Trend Changer Level 12678.

Buy above 5959 Tgt 5970,5981 and 5994

Sell below 5945 Tgt 5934,5920,5900(Nifty Spot Levels)

Traders who use Pivot and Camarilla can use the following 2 sites for Hourly values and EOD values

http://camarillapivotpoints.blogspot.com/
http://niftystockpivot.blogspot.in/

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