Nifty Opened with a small gain but got sold off immediately from the word go. Now the Weekly Trend has Turned DOWN with EOD close at 8126.95 with loss of 198.30 points.
Broader Market was also Negative with 290 Advances and 1202 Declines for the day. 200 Day Moving average is at 8289-90 zone; Nifty is comfortably staying below it, which is not a good sign.
Now Lets Look at how Open interest is aligned:
FII -- From 7th of this Month FII are covering their Shorts and Longs in Index Futures; except for yesterday, they showed some interest in buying; and today they liquidated in both sides, majority in Short Side.
In Option Front-- they are adding in both sides from the start of the series; except for a day on 7th they had liquidated longs in CE. Today's Data is also pointing out the same, buying both calls and puts and they have also covered their shorts in calls, may be a sideways to positive move expected tomorrow.
DII -- Have Covered their Longs and their Shorts too (Rem, they were sellers in Futures and buyers in Cash) they must have encashed the cool gains in Futures to compensate the virtual loss in cash buying. They don't enter Casino (AKA-- Options)
Clients-- Clients are expecting a bounce tomorrow; they have bought a good number of Index futures and covered their shorts.
Options---Clients are smart enough to cover their Puts which they have bot yesterday for a good gains (thanks to VIX) they are expecting same kind of magic in Calls tomorrow. They have bot a truck full, but same time very smart, they have sold Calls...limited gains on upside buy limited risk on downside too.
Pro desk--Dead Opposite to Clients; they are waiting for some more downside tomorrow. Good Number of Index shorts and longs got covered.
Option side---Even they have bot both calls and puts like FII's. But today they have added good number of Short Calls, So these guys are expecting some more downside. but on net to net basis, in option front they are using it as HEDGE...
Inference/Open Interest -- FIIs are seen very muted; they are selling in Cash.. but in FUTURES and OPTIONS something is missing and they are net bears...but looking at DII data; they are supporting for a bounce, today their cash purchase is saying a good number. Clients are becoming very smart :) only PRO desk is clearly bearish. They need to follow up..
Key Levels to watch for 13-05-2015 --- 5 Days low Ema -- 8143 5 Day low Ema and 5 Day Close -- 8191/8194 .. So clearly we have a very strong resistance at 8145-8194 zone ...
8098-38 is 5 Monthly Low Ema minus filter is the only meaningful support zone.
Plan your action plan for the next trading day and get into the ring don't merely be a spectator.
Broader Market was also Negative with 290 Advances and 1202 Declines for the day. 200 Day Moving average is at 8289-90 zone; Nifty is comfortably staying below it, which is not a good sign.
Now Lets Look at how Open interest is aligned:
FII -- From 7th of this Month FII are covering their Shorts and Longs in Index Futures; except for yesterday, they showed some interest in buying; and today they liquidated in both sides, majority in Short Side.
In Option Front-- they are adding in both sides from the start of the series; except for a day on 7th they had liquidated longs in CE. Today's Data is also pointing out the same, buying both calls and puts and they have also covered their shorts in calls, may be a sideways to positive move expected tomorrow.
DII -- Have Covered their Longs and their Shorts too (Rem, they were sellers in Futures and buyers in Cash) they must have encashed the cool gains in Futures to compensate the virtual loss in cash buying. They don't enter Casino (AKA-- Options)
Clients-- Clients are expecting a bounce tomorrow; they have bought a good number of Index futures and covered their shorts.
Options---Clients are smart enough to cover their Puts which they have bot yesterday for a good gains (thanks to VIX) they are expecting same kind of magic in Calls tomorrow. They have bot a truck full, but same time very smart, they have sold Calls...limited gains on upside buy limited risk on downside too.
Pro desk--Dead Opposite to Clients; they are waiting for some more downside tomorrow. Good Number of Index shorts and longs got covered.
Option side---Even they have bot both calls and puts like FII's. But today they have added good number of Short Calls, So these guys are expecting some more downside. but on net to net basis, in option front they are using it as HEDGE...
Inference/Open Interest -- FIIs are seen very muted; they are selling in Cash.. but in FUTURES and OPTIONS something is missing and they are net bears...but looking at DII data; they are supporting for a bounce, today their cash purchase is saying a good number. Clients are becoming very smart :) only PRO desk is clearly bearish. They need to follow up..
Key Levels to watch for 13-05-2015 --- 5 Days low Ema -- 8143 5 Day low Ema and 5 Day Close -- 8191/8194 .. So clearly we have a very strong resistance at 8145-8194 zone ...
8098-38 is 5 Monthly Low Ema minus filter is the only meaningful support zone.
Plan your action plan for the next trading day and get into the ring don't merely be a spectator.
Thanks a lot! Expecting your inputs regularly. Well presented. - Ashokk
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ReplyDeleteTabular form of data with your views against each item may be easy to understand. Good and Keep it up. God Bless
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