FII Derivative Data Analysis for 9 August Trade in Nifty Future

By | August 8, 2012 7:11 pm

“Don’t take action with a trade until the market, itself, confirms your opinion. Being a little late in a trade is insurance that your opinion is correct. In other words, don’t be an impatient trader.”

Nifty has rallied from 5033 till 5393 without any correction and in straight line its not the first time its happening neither will be the last time but the attitude of maximum traders remains the same, Keep finding tops and short the market and loose money. Why traders want to short when the trend is up, let the market itself confirm the reversal and than go for the trade or stay on sidelines till you have a clear trend as per your system.

I will reiterate again there is no fun in catching the tops and bottom of market what is more important is how much points you are able to make and increase your trading account irrespective of market moves.

1. FII  bought 28568  Contracts of NF ,worth 709.97 cores  with net OI increasing by 11204 contracts.

2. As Nifty Future was up by 7 points and OI has increased by 11204 contracts logically  means FII have added longs in Index Future, but the data sheet says they have started exiting longs and  started booking profits in long trades.

3. NS closed at 5338 after making a high of 5378 forming an Gravestone Doji candlestick , which shows the inability of Bulls to further push up prices.As discussed earlier the range of 5350-80 is supply zone,cannot be broken in single attempt. Bulls tried today and failed. Tomorrow we have the IIP data and market can see wild moves if data is not supportive. Resistance for Nifty has come up to 5350 and after that 5380  which needs to be watched closely ,Support now exists at 5314 ,Below 5260 gap filling will start till 5216 Trend is still buy on Dips till 5300 is not broken on closing basis.

4. Its been 9 days in August series, Nifty Futures have close positive in all days expect 2 August, so such is the power of liquidity drive rally. FII have added net 144640  in Open Interest when Nifty has moved 231 points.

5. Nifty August OI is at 2.36 cores with an addition  of 4.73  Lakh in OI, longs were again added.

6. Total F&O turnover was 1.15 lakh  Cores  with total contract traded at 2.6  lakh.

7.  5400 CE saw an  unwinding of 0.84  lakhs and total OI stands at 71 lakhs, Finally unwinding starts in 5500 CE,4 lakhs got unwinded still having  highest OI of 88 lakhs,  5300 CE also saw an unwinding  of 4  lakhs with total OI now standing at 41 lakhs, So 5400 remains the ceiling area.4900-5500 CE saw an unwinding of 10 lakhs in OI.

8. On Put side 5000 PE saw an addition  of 1 lakhs,immediate support of Nifty.4900-5500 PE added total of 18 lakhs in OI.5300 PE added 9 lakh in OI suggesting market participants are seeing nifty staying above 5300.

9.FII  bought 1114 cores and DII sold 794  cores in cash segment.INR closed at 55.54  Live INR rate @

10. Nifty Futures Trend Deciding level is 5309, Trend Changer at 5248 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 5313 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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