Tuesday, May 19, 2015

19-05-2015

Nifty Opened with Gap down and went to test the earlier resistance at 8333. Buyers took NIFTY above 8400 but was not able to sustain there; fell off sharply again to the support region of 8334-40 and closed at 8365.65 with loss of 8 points. 

Last week close gave us a weekly "pause" in the downtrend and today sell on rise got active; signalling strong resistance above @8427-30 zone. so again, we are entering buy on dip and sell on rise, as long as nifty stays above 8200. The range now is 8213---8430 Broader Market was slightly positive with 773 Advances and 703 Declines for the day. 

Now Lets Look at how Open interest is aligned:

FII -- Are still net "short" in index futures. Today they have gone longs 
DII -- Are still net "short" in index futures. Today they have covered their longs and took some shorts.
Client -- Are still net "Longs" in index futures. Today they have covered both longs and shorts.
PRO -- Are still net "short" in index futures. Today they have covered longs and took some shorts.

clearly FII/DII/PRO are holding net shorts and Clients are longs. If this doesn't change, MAY expiry can be Negative.


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