1) FII & DII data: As per provisional data released today, FIIs were Net sellers by 1731 Crs and DIIs were Net buyers by 754 Crs . 1731 is a big figure! The final data for Friday also show that FIIs were Net sellers in Equity (751 Crs ) and index (2002 Crs , again a very big figure), and net buyers (191 Crs , only) in stock . It seems on Friday and today, FIIs took to selling big time. If the trend continues for next 2-3 days then we may see change in direction of market, rather indices.
2) Option Chain data: On PUT side, the highest total OI (25.25 lakhs) and highest Put writing (4.70 lakhs) is at 12000, so 12000 for tomorrow is likely to act as good support. On CALL side, highest total OI (27.68 lakhs) and highest Call writing (5.93 lakhs) is seen at 12100 so it may act as resistance. Thus for tomorrow, 12000 to 12100 might act as brocket for trading.
3) Charts: Nifty made a strong candle on and finished with lower high, higher low but lower close. Luckily, it didn’t breach crucial 12000 level and 12017 (Friday’s close). Today’s move didn’t create any fresh buying or selling areas. So we will go by our old markings. Buy if Nifty comes in between 11990 and 11960 with SL at around 11950. Resistance may be taken as today’s high.
If we look in totality using FII & DII data, OC data and charts, bias now has moved downwards since FIIs sold heavily for last 2 sessions, OC doesn’t show any enthusiastic Put writing and on Chart for 2nd time Nifty made lower high, lower close than previous candle. However, Nifty holding on to 12000 does inspire some confidence. So let’s check tomorrow. If nifty remains below 11960 for some time, assume that Nifty might go down from here.
All the best. Happy trading.