Nifty completes ABC correction, FII Option data analysis

By | June 24, 2014

FII_1

  • FII’s sold 458  contract of Index Future worth 15 cores, 11.9 K Long contract were added and 12.4 K short contracts were added So FII’s went in market with hedged positions adding equally in both Longs and shorts.
  • Nifty after 10 days of consolidation broke on downside, and completed its ABC correction as shown in below chart. As per ABC pattern “It’s a stop run of the first pullback after an aggressive move to the upside that signifies more potential in the direction of the larger move.” so if low of 7444 is held we can see bounceback. 

Nifty Hourly EW

Also Gann chart shows Nifty not able to sustain above green line can see a fall till Blue line where it found support and bounced back. Beauty of Gann Analysis 🙂

nifty daily

  • Nifty Future May Open Interest Volume is at 1.35 cores with liquidation of of 4.1 lakhs in Open Interest, showed liquidation of short  positions.
  • Total Future & Option trading volume at 2.75 lakh core with total contract traded at 2.6 lakh.PCR @0.80, still more calls are getting written.
  • 7600 Nifty CE is having highest OI at 74.8 lakhs  and 7700 CE having second highest OI  suggesting 7600 will not be an easy hurdle to cross.12  lakh addition in 7500  suggests that bears will try hard to close below 7500. FII’s sold 2.9 K CE longs and 6.9 K  CE were shorted by them.
  • 7500 PE OI at 49.2 lakh saw liquidation of 3.1 lakh so support of 7500 looks dicey now, 7300 PE also liquidated 2.1 lakhs suggesting smart sellers are booking profit an early indication 7500 can break .FII’s bought 25.2 K PE longs and 5.5 K  PE were shorted by them. FII’s are still aggressive buyers in Put options suggesting we are not out of woods still so cautious on long.
  • FIIs sold 214 cores in Equity and DII bought 117  cores in cash segment.INR closed at 60.2.

Buy above 7500 Tgt 7535,7560 and 7583 (Nifty Spot Levels)

Sell below 7488 Tgt 7445, 7400 and 7360 (Nifty Spot Levels)

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2 thoughts on “Nifty completes ABC correction, FII Option data analysis

  1. ammolh

    hi.
    nice analysis
    how u calculate 11.9 k contracts were added and 12.4k shorts were added

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