Below is my Interpretation of FII OI data Sheet for 2-Jan-11.
1. FII sold 18,284 Contracts in NF worth 419.15 Cores in Index Futures with Open Interest increasing by 5958 contracts.
2. As NF was up by 16 points with Open Interest increase by FII . Rise in OI with Rise in price means shorts were squared off as we know FII are carrying shorts or they have added more short in today’s small upmove. As FII Volumes are quiet low so its difficult to intrepert at this juncture were it shorts or Longs addition
3. Today can be termed as Day of reversal why because of Nifty bouncing from 4588.
78.6% retracement from 4531-4819 comes at 4592 and Nifty bouncing fr am 4588 and closing near 4536. Tommrow if it continues with this upmove we can say that Nifty has confirmed short term reversal.
4. Today was good start for People who followed the Weekly Trend deciding level of 4646. Nifty High was 4646 and than it corrected till 4588.You can read the Weekly Analysis by clicking on this link.
4. Today’s choppy session was on volumes 2.77 Lakh NF . I accept the market to show an improvement in volumes from tomorrow or later part of this week.Total turnover is just 64.4 K cores. Today rise was backed by RIL which again bounce above 700 levels. We have discussed and asked readers to buy RIL on our Facebook page.
5. NF total OI was at 2 cores with 2.17 lakh addition10% OI addition with rise in price means longs were added in NF .
6. In Equity cash segment FII sold 93 cores whereas DII sold 84 cores. FII have sold 1015cores on 29 Dec, the Expiry of December Series ,The fall of just 60 points from 4700-4640 was able to absorb such huge selling. Which means that strong hands adding value buying at bottom.
7. As per Options data 5000 CE has highest OI of 47 lakhs addition of 3 lakh and 4500 PE has highest OI of 53 Lakhs addition of 5 Lakh. So 4500 becomes support.
8. 4700 CE added 4.04 lakhs in OI with net of 40 lakhs which means 4700 become immediate resistance as its near the important resistance of 4690.
9. FII have bought Options today worth 181 cores with net OI addition of 44k meaning they were buyers in Calls reason being OI and Price of Calls have increased
10. FII SAR level comes at 4560,up from Friday’s SAR of 4542.
11. In total an uneventful session with first sign of selling pressure coming down and short term reversal indications. Price will confirm the trend tommrow as of now we are still forming lower lowon daily charts.
13. On Upside above above 4646 Nifty Tgt 4659,4690 and 4740.
14. On dowside below 4622 Nifty Tgt 4588 ,4564 and 4531 (Nifty Spot Level)
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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