Nifty Opened with Gap down and started to fall immediately. Just to reach the support zone of 8130-8100. Later part of the day, Nifty was seen consolidating at 8220-8160 for most of the day and closed at range high 8224.20 with loss of 11.25 points. Now the Weekly Trend is still NEUTRAL to BULLISH. As long nifty stays below 8350 and above 8060 best strategy will be to buy low and sell at highs.
Broader Market was slightly positive with 868 Advances and 598 Declines for the day. 200 Day Moving average is at 8289-93 zone; Nifty is trying to come back and touch 200 Day Moving Avg. Bulls will breath easy only when they take NIFTY above this and stay there for at-least 3+ days.
Now Lets Look at how Open interest is aligned:
Fii -- clearly selling at all the rallies; they are heavily adding shorts in Index futures.
Dii -- Shows Addition in longs today without covering their shorts (May be expecting some technical bounce)
Clients -- Showing some buying interest in both Futures and Options; clearly indicating that they are very bullish and expecting some more upside.
Pro Desk-- Shows Addition in longs today with short covering.
So net on net; today DII/Clients/Pro desk have taken long exposure in Index and FII are strongly against this. It would be interesting to see which side takes the control.
In Cash side, FII are still sellers (very small numbers) and DII are buyers.
Expecting Nifty to Move out of this range 8355---8080 either tomorrow or by Monday. Else, wait for clear direction before attempting any longs or shorts unless its for Intra.
Happy Trading
Broader Market was slightly positive with 868 Advances and 598 Declines for the day. 200 Day Moving average is at 8289-93 zone; Nifty is trying to come back and touch 200 Day Moving Avg. Bulls will breath easy only when they take NIFTY above this and stay there for at-least 3+ days.
Now Lets Look at how Open interest is aligned:
Fii -- clearly selling at all the rallies; they are heavily adding shorts in Index futures.
Dii -- Shows Addition in longs today without covering their shorts (May be expecting some technical bounce)
Clients -- Showing some buying interest in both Futures and Options; clearly indicating that they are very bullish and expecting some more upside.
Pro Desk-- Shows Addition in longs today with short covering.
So net on net; today DII/Clients/Pro desk have taken long exposure in Index and FII are strongly against this. It would be interesting to see which side takes the control.
In Cash side, FII are still sellers (very small numbers) and DII are buyers.
Expecting Nifty to Move out of this range 8355---8080 either tomorrow or by Monday. Else, wait for clear direction before attempting any longs or shorts unless its for Intra.
Happy Trading
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