Nifty nearing Short term top, FII data Analysis

By | August 19, 2014

FII_1

  • FII’s bought 11.4 K contract of Index Future worth 451 cores, 9 K Long contract were added and 2.3 K short contracts  were squared off by FII’s. Net Open Interest increased  by 6.7 K contract , so FII are going long ans squaring off shorts in Index Futures.
  • Nifty did a fresh life high today @ 7918,Nifty has rallied 378 points in 7 trading session and formed a DOJI pattern today suggesting indecision in Bulls and bears. As per EW we can make a short term top in next 2 days, another fact which support this as last 2 rallies also lasted between 8-10 trading sessions. Also Fibo Fan are also showing Nifty has reached the top of trading range.

Nifty Hourly EW

 

nifty ff

 

  • Nifty Future Aug Open Interest Volume is at 1.52 cores with addition of 1.9 lakh suggesting long addition.VIX being very low suggests bulls are still overconfident and every dip is getting bought into.
  • Total Future & Option trading volume was   at 2.17 lakh core with total contract traded at 1.8  lakh. PCR @1. PCR has slightly decreased from 1.06 to 1.Slightly surprising because with a rise , generally PCR has to increase.
  • 8000  CE  OI at 84.2 lakh  suggesting wall of resistance , 7800 CE  liquidated 1.8 lakh  suggesting bears got panicked today .7700/7600 CE saw 4.9 lakh  liquidation so bears are losing there ground . FII’s bought 87.7 K CE longs and 2.8 K  CE were shorted  by   them. Today FII’s bought 87 K contract highest ever, last time they bought 61.5K on 07 Feb and after that market corrected 150 points, so time to be cautious on long trades.
  • 7700 PE OI@ 78.9 lakhs so strong base @ 7700. 7800 PE added 10 lakh addition in OI, suggesting  support @ 7800, Break of 7800 can bring panic in bull camp .FII’s bought 1.9 K contract  PE longs and 15.8 K PE were   shorted  by them.
  • FII’s bought 559 cores in Equity and DII bought 264 cores in cash segment.INR closed at 60.67.

 

Buy above 7918 Tgt 7936,7954 and 7970  (Nifty Spot Levels)

Sell below 7900 Tgt 7880, 7860 and 7842 (Nifty Spot Levels)

 

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3 thoughts on “Nifty nearing Short term top, FII data Analysis

  1. jagadish

    Sir could you please highlight importance of PCR ratio

  2. Bramesh Post author

    Hello Sajesh,

    Its covered in my trading course.

    Rgds,
    Bramesh

  3. Sajesh

    Hello Bramesh,

    Could you please tell us how you calculated the figure of 87K contract ?

    Thanks,
    Sajesh

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