In the previous post we had highlighted that FIIs were not playing for the down move and on the downside the zone of 8816-8835 will be very important. Well, Nifty made a low of 8821.90 and recovered from there to close in the green.
That’s the power of data and chart analysis for you. So let’s see what we have got today.
FIIs were again Net buyers today. 6585 contracts were bought amounting Rs 360.64 Cr
FIIs added 4020 Long contracts and reduced their Short position by 3326 contracts. Their Long :: Short ratio now stand at 1 :: 1.
Retail clients added 550 Long Contracts and increased their Short positions by 19625 contracts. Their Long :: Short ratio has changed from 1:: 1.12 and now stands at 1 :: 1.32 reflecting that they are turning further bearish.
Pro traders squared off 1632 Long contracts & also squared off 6776 Short contracts. As a result their Long :: Short ratio has turned towards neutral zone from 1:: 1.32 to 1:: 1.09
All in all, it can be said that Retail participants are increasing their Short position when FIIs and Pro are turning neutral.
Looking at the chart, till the time green line is held, Nifty has higher probability to move towards 9620 levels. ( good risk:: reward ratio )
The red line, for us, is the Laxman Rekha – only if that is broken decisively then we can see resumption of down trend.
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Take care & safe trading!!!