Nifty
Opened with Gap up and showed initial signs of buying interest till 8270-80 zone. But it was sold off to test the support again at 8210-20 zone. Almost till end of day; it was trading between 8230-8270 (40 points) Last half an hour saw some volatility by price moving 8240-8270 in a very quick time frame. It closed green at 8262.35 with gain of 38.15 points.
Weekly Trend has given a pause with a close above its 5 Low EMA and now it has entered the "Trading Mode" with NEUTRAL to BULLISH and "Sell of Rise". As long nifty stays below 8350 and above 8060 best strategy will be to buy low and sell at highs, expecting this range to get resolved by next week.
Broader Market was slightly positive with 804 Advances and 653 Declines for the day. (please note, daily AD ratio is getting tilted to Negative side) 200 Day Moving average is at 8289-93 zone; Nifty is trying to come back and touch 200 Day Moving Avg. Still No signs of improvement, the danger of being below this average is a cause of concern for bulls.
Now Lets Look at how Open interest is aligned:
FII -- Open Interest shows some long addition (may be at the morning dip) and more shorts added. Clearly they are not at all buying. Also note that, after so many months, now they are "net Shorts".
DII -- They have covered very small Longs and their short positions are intact. They have not added any shorts yesterday and today.
Clients -- They have covered both Longs and shorts today; Net open interest is still Long.
Pro -- They have Added shorts today and covered some of their longs.
Yesterday we had 3:1 where, FII were sellers and other 3 were expecting green day. It turned out to be a green day. But was it just to enter shorts at higher range ? :) Today's OI data is not suggesting any good news to bulls. Next week holds the answer.
Such times till the range resolves, trade light and book profits at critical juncture.
Happy Weekend!
Weekly Trend has given a pause with a close above its 5 Low EMA and now it has entered the "Trading Mode" with NEUTRAL to BULLISH and "Sell of Rise". As long nifty stays below 8350 and above 8060 best strategy will be to buy low and sell at highs, expecting this range to get resolved by next week.
Broader Market was slightly positive with 804 Advances and 653 Declines for the day. (please note, daily AD ratio is getting tilted to Negative side) 200 Day Moving average is at 8289-93 zone; Nifty is trying to come back and touch 200 Day Moving Avg. Still No signs of improvement, the danger of being below this average is a cause of concern for bulls.
Now Lets Look at how Open interest is aligned:
FII -- Open Interest shows some long addition (may be at the morning dip) and more shorts added. Clearly they are not at all buying. Also note that, after so many months, now they are "net Shorts".
DII -- They have covered very small Longs and their short positions are intact. They have not added any shorts yesterday and today.
Clients -- They have covered both Longs and shorts today; Net open interest is still Long.
Pro -- They have Added shorts today and covered some of their longs.
Yesterday we had 3:1 where, FII were sellers and other 3 were expecting green day. It turned out to be a green day. But was it just to enter shorts at higher range ? :) Today's OI data is not suggesting any good news to bulls. Next week holds the answer.
Such times till the range resolves, trade light and book profits at critical juncture.
Happy Weekend!
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