1) FII & DII data: For a change, FIIs were net buyers today and DIIs were net Sellers. Figures for both these entities are not so high to give us any conclusion about their outlook. So let’s leave it at that. In final data for yesterday, FIIs were Net sellers in Equity and index but net buyers in stock . FIIs will not shy away from Selling if they find valuations high.
2) Option Chain data: (Expiry 12th December) On PUT side, highest total OI is on both strikes 11900 and 12000 (almost equal figures) suggesting that half of put writers believe that 12000 can be breached and then 11900 may act as support. Highest Put writing is at 12000 and 2nd highest at 11900. So this data also supports the said view. On CALL side, 12100 is a clear cut resistance with highest total OI and highest fresh Call writing by huge margin over other strikes. Tomorrow it is almost impossible for Nifty to reach 12100.
3) Charts: for Nifty gives you a very clear picture of how things may pan out in next few days. Nifty after 3 days of strong red candles previously, made a strong green candle today and on the back of that, opened gap-up but could not sustain it and fell down at 12000. Then, it climbed a bit to close at 12018. In today’s session, Nifty tried to go below 12000 thrice (check on 5 min chart) and each time recovered . Tomorrow, I think it may succeed! There is a strong buying area marked on 15 min chart and also a selling area if Nifty reaches there. Buy or Sell with a SL beyond red line. Chances of fall or consolidation in a narrow range are more.
All the best. Happy trading.