FII Derivative Data Analysis for 12 June trade in Nifty Future

By | June 11, 2012

2 Important events took place today which a trader can write down in his trading journal as Prices will always have memory and will be helpful for future trades

1. Throwing Money at market cannot solve economic problems when the underlying fundamentals are not taken care off. Span got 100 Billion Dollar bailout and Financial markets rejoiced but when market came to know about reality as Macros are still detiroating, the intial flurry of bullishness is fading away and you can see Europe back in RED and loosing all gain, specifically Spanish market which were up by 4.5% start of day are now up by just .6%. Same was discussed in our Facebook page, You can like the page to get the real time updates

2. Smart money and professional traders never trade on news, In morning we gave 5125 laxman rakha in our FaceBook Page and Nifty was unable to cross it and finally gave a downfall after S&P downgrading Indian Rating to Junk came, As a matter of fact this Report was out on 8 June and it further confirms the nexus which market Operators have with media, But I am a firm believer of price as it discount all the activity of Smart,Informed,Market Operators. So follow price and your trading system with discipline to make money.

1. FII  bought 20997  Contracts of NF ,OI increased by 2419.

2. As Nifty Future was down by 6  points and OI has increased by 2419  contracts with total contract bought  at 20997 means FII have created fresh longs in Index futures

3. Nifty made a close at  5054 below 200 DMA@5067 and 50 DMA@5087,which shows Bulls have no power to sustain Nifty above 200 DMA and rally can be termed as SUCKER RALLY,but we will require more confirmation from price and volume action . Till 4929 is not broken Bulls have upperhand

4.Nifty opened gapped up and during the course of the day was able to fill gap still we have 3 pending gaps subs 5000 level, Tomorrow we have IIP data at 11 AM which if comes good will give a reasong for RBI not to cut rates and can lead Stock markets down. Trade after IIP data comes.

5. Nifty June OI is at 1.50 cores  with an unwinding  of 5.68 lakhs in OI,longs  were covered. Range as per Rollover data comes at 4825-5013, and we have comfortable closed above 5013. Bulls have upper hand now.

6. Total F&O turnover was 1.12  lakh  Cores  with total contract traded at 3.01 lakh. Cash Volume turnover was higher than past 2 days at 7228 cors does it signify distribution by at higher levels?

7.  5000 CE of June saw an added of .39  lakhs , total OI now stands at 45 lakhs,5100 CE has seen 1.9 Lakhs addition today with total OI now at 52.3 lakhs. Ceiling has increased to 5100 on Higher end.

8. On Put side 4800 PE is having highest OI of 78  lakhs making 4800 a strong base,4600 PE has added almost 7 lakhs in OI so smart money is buying lower strike puts, As FII Put buying price comes at 4857 so they are active in lower strike puts which are available at dirt cheap premium.

9.FII  bought 130 cores and DII sold  214  cores in cash segment. Live INR rate @ http://inrliverate.blogspot.in/)

10. Nifty Futures Trend Deciding level is 4956, Trend Changer at 4934 NF (Above this Level Bulls will rule Nifty/Below this levels Bears have upper hand).

Buy above 5077 Tgt 5105,5125 and 5150

Sell below 5041 Tgt 5022,4986 and 4962 (Nifty Spot Levels)

 

Disclaimer: These are my personal views and trade taken on these observation should be traded with strict Sl

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