FII FnO Analysis for 9 May trade in Nifty Future

Below is my FII interpretation for FII datasheet for 9 May

1. FII  sold 4910  Contracts of NF worth 76 cores OI increased by whopping  27192. Number of Contracts sold were less but OI has seen a good increase which suggest more number of shorts have entered the system.

2. As Nifty Futures was down  by 120 points and OI has increased  by 27192 , which signify more shorts have entered the system. Yesterday as we pointed out FII have used the rise to short the market and today they have added more shorts in the system.

3. Today first sign of weakness was visible when Nifty was unable to scale at 200 DMA@5115 twice and same was updated on Facebook page.So in spite of GAAR getting deferred,FII used news to add more shorts. Now we broke the important low of 4988 and gap filling should start tomorrow till 4955.

“Always remember below 200 DMA Bears rule the Index/Stock and Rise based on good news are used to add shorts by smart money.”

4. India VIX@22.16 moved up sharply and any close above 23.33 will lead to more fall in Nifty. VIX can go till 26-28 range and in the process Nifty can easily loose another 200 points. Also the lower trendline was finally broken in today’s fall.

5. Nifty  May  OI has increased by whopping 17.55 Lakhs .Total OI stands at 2.02 cores. Huge Shorts were covered in NF.

6. Total F&O turnover was 1.27 lakh  Cores  with total contract traded at 3.94 lakh .Volumes spiked up in later half of session which was coupled by long unwinding and shorts addition. It was recap of yesterday trade with only change Index was falling instead of rising 😉

7. 5300 CE saw an addition   of 7 lakhs in OI,total OI now stands at 63  Lakhs making it the higher end of May Series.5200 CE has added 11 lakhs in OI with total OI at 62 lakhs. Now 5200 looks a strong resistance for May series.  4900-5300 CE added 40 lakhs in OI which is a bearish sign. More call Addition more Bears will get stronger.

8. On Put side 5000 PE is having highest OI of 67  lakhs . 5000 PE writers did not budged  today also and added 47K contracts. Nifty broke the 4988 in dyeing hours of trade and quickly recovered to close at 4999.Once 5000 gets broken next support at 4900 PE looks quiet weak total OI is at 46 lakhs only.Hence we can see a quick fall if 4900 PE do not see much addition tomorrow.

9. As discussed yesterday FII are buying lower strike PE mostly in 4700-4900 as today also total OI has increased by 26 lakhs.

9.FII  sold 398cores and DII bought 257 cores in cash segment.Also note they are still selling in Stocks Future segment and today’s sell was 104 cores.

10. Nifty Futures Trend Deciding level is 4850, Trend Changer at 5170 NF (Above this Level Bulls will rule Nifty/Below this levels Bears have upper hand).If you see Trend Deciding level is down by almost 147 points which means FII have added more shorts in system.

Buy at 5034 Tgt 5063, 5085 and 5112

Sell below 4988 Tgt 4949,4920 and 4898 (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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