FII sold 2K contract of Index Future worth 179 cores, Net OI has increased by 10.2 K contract 4.1 K Long contract were added by FII and 6.1 K Shorts were added by FII. Net FII Long Short ratio at 1.16 so FII used FALL to ENTER longs and ENTER shorts.
As Discussed in Last AnalysisBulls failed to move above 18000 and bears below 17925 now waiting for target of 17856/17753. Bulls failed to show reversal and gann price time squaring did not work as expected but if we again go above 17958 bulls will be back, Bulls need to move above 17958 for a move towards 18045/ 18121/18225. All Bearish target done, we have 3 important astro event happening Lunar Ecplise with Full Moon,Moon at Apogee and Sun Ingress happening and also we are at 144 days as shown in below chart suggesting we can see a bounce back in nifty above 17821 for a move towards 17888/17955/18022, Bears will have chance below 17729 for a move back to 17688/17610/17512
MAX Pain is at 17850 PCR at 0.75 . Rollover @ 18190 unable to close above it.
Nifty Dec Future Open Interest Volume is at 0.98 Cores with liquidation of 0.59 Lakh with increase in cost of carry suggesting SHORT positions were closed today.
There is total OI of 4.5 Cores on the Call side and 3.3 Cores on the Put side, So, the activity is more on the CALL side, indicating option writers are in BEARISH zone.
The Option Table data indicates decent support at 17800 and reasonable resistance at 18000.
DII have been buying equities during the week. Add, the high equity selling yesterday by FII indicate that we are closer to the bottom. ( I go with premise that equity cycle is a delayed FnO cycle – and high activity in equities generally indicate culmination of that particular cycle.)
FII’s sold 3930 cores and DII’s bought 1885 cores in cash segment.INR closed at 74.34.
It is interesting to observe that the equity selling increasing in its quantum from 344 crore to 3930 crore yesterday. It confirms my belief that equities are delayed FnO cycle now.It is important to note that DII have stepped up their equity buying in the last 3-4 days. Otherwise the damage could have been more severe. Now, whether DII are buying the equities as an opportunity or as a compulsion is what will determine the next course of action.
In Last 2 trading sessions FII’s have bought Options worth 5.3 K Cores and today Options OI have increased by 68 K contracts suggesting we should see good trending move in next 2 trading sessions. So we got big fall and today FII’s have booked Options worth 8.5 K cores in Options.
For Positional Traders Stay long till we are holding Trend Change Level 17792 and stay short below it. That will help you stay on the side of Institutions and which has a greater risk-reward ratio. For Intraday Traders 17964 will act as a Intraday Trend Change Level.