Below is my Interpretation of FII OI data Sheet for 23-Feb-12.
1. FII bought 4976 Contracts of NF worth 137.31 cores OI also decreasing by 343895 contracts with NF ending the month with 325 points gain
2. As Nifty Futures was down by 30 points and OI has decreased by whopping 343895 contracts means FII did profit booking on longs.
3. Nifty march future closed at 5539 a premium of whopping 56 points, Such High premium cannot be sustained for long time and it signals correction is inevitable to get the premium back to normal levels.
4. Nifty Feb OI has decreased by massive 36 lakh .Total OI stands at 1.2 cores contracts.March Series OI has increased by 34 lakhs with total OI standing at 2.3 cores means Feb contracts got rollovered to march. Now are these shorts or longs? Someone who rollovered his shorts got a whopping 60 points premium which does make a good risk to reward ratio for shorters
5. As 35 Lakhs got rollovered today when Nifty March Future made a low of 5503 and High of 5591 implying 5503 be an important support levels for March Series.Basically 1.8 Cores NF contracts got added in 5664-5539. So basically NF trading below this range will lead to more weakness.
7.Total F&O turnover was 2.58 Lakh cores highest FnO turnover in past 5 months.
8. In equity FII bought 104.55 cores DII sold 640 cores. FII has bought massive 16147 cores in Feb series only
9. 5500 CE March is having highest OI of 26 Lakhs 5300 PE is having the highest OI 46 Lakhs. With NF closing negative still PE lost premium because of 59 points premium.
10. Volatility index collapsed today by 10%. I have not seen in recent past collapsing 10% with nifty closing in red. I would be caution on Long side in Nifty due to high premium.
11. FII SAR 5534 NF March((For Positional Traders) and VWAP at 5391 NF (Below this Level Bears will attack Nifty).
12. Today we had a quick points on intrady based on SAR levels and Morning analysis for Feb expiry proved correct with Nifty closing at lows of the day.
Buy above 5494 Tgt 5507,5527,5562
Sell below 5460 Tgt 5447,5427 and 5400 Intra day Players can use the Levels.
All levels mentioned are SPOT levels.
Let me go by Disclaimer these are my personal views and trade taken on these observation should be traded with strict Sl
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