Below is my Interpretation of FII OI data Sheet for 3-Jan-11.
1. FII bought 32,722 Contracts in NF worth 765.93 Cores in Index Futures with Open Interest increasing by 24,178 contracts.
2. As NF was up by 136 points with Open Interest increase by FII . Rise in OI with Rise in price means shorts were squared off still no indication of Long entry by FII in Nifty Futures. We get such sharp and swift rally the last one was on 21 Dec in a while and it gets fade off in subsequent session,This has been trend from past many month will it be different this time?
3. We discussed the possibility of reversal yesterday and it got materialized today confirmation came in first 15 min only when Nifty Spot got comfortably traded above 4690 which was first resistance as per our Weekly Analysis.
4. For Candlestick follower yesterday we formed a DragonFly Doji on Daily charts which is considered a candle for reversal and today we formed a White marabuzo.
Read More about Confirmation will come with Nifty closing above today’s high tomorrow and low of 4676 saved throughout the week.
5. Today’s trending session was on volumes 3,6 Lakh NF .Total turnover is just 87.7 K cores. Today rise was backed by buying in Banks,RIL,LT so we have a good buying so best is not to jump in shorts right now till reversal signals are seen.
6. NF total OI was at 2.08 cores with 7.74 lakh addition OI addition with rise in price means longs were added in NF .
7. In Equity cash segment FII bought 255 cores whereas DII bought 206 cores. Both DII and FII are bbuyers after 5 Dec. If we see a follow through buying the resistance level of 4840 shall we taken out in this week itself.
8. As per Options data 5000 CE has highest OI of 48 lakhs addition of 1 lakh and 4500 PE has highest OI of 59 Lakhs addition of 7.45 Lakh.7.45 addition is shorts in 4500PE.
9. 4700 PE has added 19 lakhs in OI which make me belive 4700 is base or support for market in immediate near term.
10. 5100 CE has seen an addition of 6.89 Lakhs in OI was it smart money or retails buying in speculation?
11. FII have bought Options today worth 35 cores with net OI addition of 18k so they have not booked any profit and yesterday we has calculated they were buyers in call options so they are still holding the same which signify its not a single day rally and more is to come.
12. FII SAR level comes at 4706. Keep this level as SL for positional longs.
13. Today after 20 trading session Nifty has closed above 20 SMA @4740 and technically its looks all set to touch 50 SMA at 4925.
13. On Upside above above 4775 Nifty Tgt 4810,4840 and 4881.
14. On dowside below 4740 Nifty Tgt 4724 ,4696 and 4676 (Nifty Spot Level)
Let me go by Disclaimer these are my personal views and trade taken on these observation should be traded with strict Sl
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I did some typo mistake on levels which have been corrected.. Thanks for pointing out for mistake
On 3rd jan 2012 none of the pivot point formulae worked.Nifty opening
number wiped out all support and resistance levels.Even Volatility method did not work.The most sorry state of affair is that none of Analysts had predicted such breakout .Shall one may assume that India is lacking in research in financial market?
It looks Levels are still not corrected……
On downside it is mentioned as 4724, 4696, 4776
where last one should be 4676.
Also in Heading, Analysis is mentioned for 4th December while it should be 04th January.
Apart from above typing errors in a hurry, Analysis presented by you is extremely eye opener.
Thanks for such an honest and dedicated hard work in the interest of your followers…..
Thanks a lot for pointing out the typo error.
The one mentioned by you have been corrected.
upside 4775 target 4659
Levels have been corrected. Please check.
thank you for wonderful analysis.
Pl check support and resistance level as it seems some typo.
Mistake corrected 🙂