Below is my Interpretation of FII OI data Sheet for 07-Mar-12.
1. FII sold 28305 Contracts of NF worth 742 cores OI also decreasing by 18059 contracts.
2. As Nifty Futures was up by 8 points and OI has decreased by 18059 contracts means profit booking on shorts were done by institutions
3. Yesterday close was very crucial for Nifty as it bounced from the expected support of 5171 as shown in below chart. 5166 was 200 DMA and 5171 was channel support.
4. From past 2 days Nifty is closing above 38.2% retracement of 4531-5630. This calls for a bullish case but confirmation will come with a close above 5275 tomorrow.
5. Nifty March OI has increased by 9 lakh .Total OI stands at 2.49 cores contracts.Short covering was witnessed in NF
6.Total F&O turnover was 1.15 Lakh Cores near 200 DMA Volumes were decent with total contract traded at 471951.
7. In equity FII sold 504 cores DII sold 130 cores. Both FII and DII were sellers but we saw a quick recovery in last hour of trade which means it was lead of short covering.
8. 5600 CE is having highest OI of 51 Lakhs seems with fresh addition of 2 Lakh contracts 5200 PE having highest OI of 68 lakhs with unwinding of of 7 lakhs.5200 PE writers got panicked with a move below and a weak hand shake off has happened. As SGX is trading at 5311 as we speak.
9. 5400 looks like laxman rekha for bulls as it is having the highest OI of 43 Lakh contracts and also we have the most important resistance of 20 DMA @5425 so below this Nifty will be under bearish underlying.
10. Fibo Ratio from 4532-5630 38.2% comes at 5214 which was protected today. Tomorrow if we open gap down 200 DMA@5165 should provide the support.50% retracement comes at 5084.– This is what we said on Tuesday and Low made by Nifty is 5171 and a bounce back.
11. FII SAR for Today 5234 NF March((For Positional Traders) and VWAP at 5343 NF (Below this Level Bears will rule Nifty).
People who are carrying positional short would advise them to lighten themselves near 5160 NS levels,Traders who have headed to this advise on Wednesday EOD will rejoice tomorrow.Money saved is money earned
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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