The provisional NSE figures show FII/ FPI selling at 1912 Crs and DII buyig at 1830 Crs. The final Figures show complete and heavy FII SELLING-
Around 1092 Crs.in equity, 1059 Crs in index futures and 75.42 Crs in stock futures. FIIs and FPIs have lost confidence it seems. Option chain analysis shows call unwinding at higher strikes and fresh heavy call writing (22.10 lakhs) at 11400 and somewhat OK PUT writing ( 7.66 lks) at 11300. PUT writers have also unwinded at higher strikes. So 11400 is strong resistance and 11300 is weak support. So will it go immediately down? Not likely, because of 3 reasons-
1) Nifty is taking support at its 200 DEMA (11297), so it will spend some time here befor falling further.
2) There is also 78.6 % level on FIbonacci near this price, 11320.
3) On RSI, it is almost at oversold level (34).
So sentiment is very weak. On MACD also, as shown on charts, MACD line is showing diverging from signal line, going further down and strong red bars show further signs of weakness. Go only for shorts. Short Nifty near11400, put SL at 11425 and book profit at 11300 for short term.
Around 1092 Crs.in equity, 1059 Crs in index futures and 75.42 Crs in stock futures. FIIs and FPIs have lost confidence it seems. Option chain analysis shows call unwinding at higher strikes and fresh heavy call writing (22.10 lakhs) at 11400 and somewhat OK PUT writing ( 7.66 lks) at 11300. PUT writers have also unwinded at higher strikes. So 11400 is strong resistance and 11300 is weak support. So will it go immediately down? Not likely, because of 3 reasons-
1) Nifty is taking support at its 200 DEMA (11297), so it will spend some time here befor falling further.
2) There is also 78.6 % level on FIbonacci near this price, 11320.
3) On RSI, it is almost at oversold level (34).
So sentiment is very weak. On MACD also, as shown on charts, MACD line is showing diverging from signal line, going further down and strong red bars show further signs of weakness. Go only for shorts. Short Nifty near11400, put SL at 11425 and book profit at 11300 for short term.