Below is my Interpretation of FII OI data Sheet for 1-Feb-12.
1. FII sold 16786 Contracts of NF worth 427 cores OI also decreased by 7516 contracts.
2. OI has decreased by 7516 contracts which means FII have used the rise to book out longs, Still no signs of shorting the index
3. Lets analyses the Data of OI from start of series ie. On 27 Jan OI was 477398 today OI is 443924 net deletion in OI 33474 almost 9%. Which means FII have used the Rise to book out longs they were holding from lower levels.
4. So now question come Did FII did not participated in today’s Rally My answer Yes they did. Averge traded price from FII data comes at 5089 which is way lower than today’s traded price of 5262, which means institution have done lot of day trading and profit booking.
5. Nifty Futures was able to cover up all the looses made in morning session ended up by 38 points,closed above 200 DMA after almost 9 month. Last time Nifty closed above 200 DMA was on 02 May. Now Will the close above 200 DMA.
6. Does a close above 200 DMA signify end of Bear market. I doubt so Trendling from the high of 6338 comes at 5251-6 range close above this is very important for a confirmation.
7. Yesterday we discussed the potential double top scenario which got invalidated today with a close above 5217.We gave a buy above 5230 and Nifty did intitate our buy level and made quick points from intraday perceptive.
8. Nifty OI has decreased by 5 Lakhs contract.Total OI stands at 2.1 contracts still there is space for more addition which means this rise can extend further.
9. My Advise to All readers Try to reduce exposure to equities by booking partial profit and stay with longs with strict SL
10. In equity FII bought 1676.49 cores DII sold 32 cores.FII has been also booking Profit in Stock Futures as they sold worth 427 cores.Total Turnover was 97K Cores
11. 5300 CE is having highes OI of 58 Lakhs whereas 5000 PE is having the highest OI 61 Lakhs. Range has shifted to upper end.
12. Heavy Puts writing was seen in 5000-5200 PE in total of 18 Lakhs. Total 44 Lakhs added in 2 days.
13. FII SAR has increased to 5228 and VWAP at 5187 Yesterday the VWAP was 5175 and today NF made a low of 5178 and bounced back.
Buy above 5251 Tgt 5272 ,5300 and 5343
Sell below 5210 Tgt 5195,5172,5150 and 5127
All levels mentioned are SPOT levels.
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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Thanks bro for providing valuable insights on the technical side of stock market investing… Really appreciate it. All the best
I must appreciate your knowledge sharing.
Lets see what our market does…
Chart is not enlarging . . . .
Hello Bramesh bhai,
Again telling you are genius in calculations, that’s why i always become lazy and ask you which call and put has highest OI, and every time perfect answer will be ready with you, Lets come to the point.
200DMA comes near 5200 and 200EMA comes near 5133, both moving averages are very important. If the other indicators were not showing overbought signal then Nifty sustaining above 200EMA (5133) will be a great bulls rally, but Nifty sustained above 200EMA (5133) as the company results were good at that time, according to me Nifty sustaining above 200DMA is somewhat doubt.
I am holding Nifty short from 5200 range with 5300(SPOT CLOSING) as SL.
I WAS HAVING A INSIDE NEWS FROM LAST FEW DAYS THAT WHEN THE AMERICAN MARKETS START RISING THE NIFTY WILL BE ATTACKED BY BEARS RALLY.
While i was writing this comment American markets were as follows.
Dow Jones Ind. Avg. 12,770.81 +137.90(1.09%)
Nasdaq Composite 2,851.62 +37.78 (1.34%)
S&P 500 Index 1,328.45 +16.04 (1.22%)
ALL THE BEST TRADERS.
Regards. . .
Subbu. . .
We trade on system not news so i would request you to avoid using INSIDE NEWS kind of terminology.
Thanks for sharing your analysis.
Thanks for your analysis. Can you please put some more light on Point 12 and 13, for FII F&O Data
Analysis for 2nd feb.
Heavy Put writing was seen in 5000-5200 levels. I want to know on what basis we can say this.
I agree that premium reduced in 5000-5200 levels and OI decreases. So is this sure selling or may be some has buy the puts , not the put writing. I need your suggestion on this.
If you can pls let me explain SAR and VWAP. These shows what info ? How they are related to technical analysis.
Waiting for reply.
Thanks a lot!!
Fall in Price with Rise in OI means shorting using this principal we came to the above conclusion that Options were shorted.
SAR Means Stop and Reverse means level below which NF will become weak Eg yesterday we mentioned 5228 as SAR and if you observe today’s low its 5232
Sir, best analysis of FII data and thanx 4 such type of analysis and what about PCR, is there any sign of weakness in PCR?
Thanks a lot!!
No Sign of Weakness from PCR also
Today’s FII figures indicate they have net bought Rs 1676 crs worth of equities in the cash market. Does this not indicate strong buying?
It means strong Cash/delivery based buying by FII