Below is my Interpretation of FII OI data Sheet for 28-Feb-12.
Yesterday we had a fall of 148 points today a rise of 102 points. We already had discussed possibility of rally today and it got materialized. Hope Traders were able to catch the right directions and make money. Lets move whats in store for tomorrow.
Tomorrow we have the All important GDP numbers,which will be interesting to look for as analyst are factoring slowest GDP growth in past 2 years. Any surprise will lead to continuation of Bounce which started today.
1. FII bought 35024 Contracts of NF worth 940 cores OI also increasing by 22570 contracts.
2. As Nifty Futures was up by 102 points and OI has increased by 22570 contracts means longs were added into the system.Yesterday we analyses they have moved out of shorts.
3. Nifty has for second day closed below 20 SMA@5400 which shows lack of strength of Bulls to drive Nifty above 20 SMA.
4. Nifty March OI has increased by 6.68 lakh .Total OI stands at 2.54 cores contracts. Fresh addition of longs.
5.Total F&O turnover was 92 K cores with total contract traded in March series 340,186 .Turnover is less than yesterdays turnover meaning Bulls fire power is slowing down we need turnover above 1 lakh cores to capture the 20 SMA.
6. In equity FII bought 727 cores DII sold 587 cores. FII are still buying the dips.
7. 5500 CE is having highest OI of 40 Lakhs seems with fresh addition of 2.7 Lakh contracts 5200 PE having highest OI of 73 lakhs.
8. 5400 PE saw an addition of 4.5 Lakh as NF closed at 5441 with still whopping 60 points premium. 5400 NF looks like immediate support for tomorrow.
9. 5200 PE also saw an addition of 10 Lakh with premium decreasing by Rs 38, Smart money has started writing the PE.
10. Question in everyone mind why NF premium is still 60 Points even if we got 148 points fall. I feel today fall was to move of weak hand in markets and market could start its upward journey from tomorrow till monthly closing to make a double top in coming days(This is a scenario which i am thinking which might go otherwise also) — This is what we analyzed yesterday and market obliged us
11. Tomorrow is Monthly closing and above 5401 NS Nifty will end in mometum on monthly time frame. Higher time frame will always have higher preference.Lets see how market obliged us.
12. FII SAR for Today 5421 NF March((For Positional Traders) and VWAP at 5434 NF (Below this Level Bears will rule Nifty).
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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