Saturday, October 12, 2013

FII Trading Volume Analysis

FII Trading Volm Analysis

A quick glance at the FII's trading data above shows more number of green colored cells than red ones indicating that the FII's are bullish. However the Industrial Output, Manufacturing Sector Growth and Capital Goods data that came in was all negative. So the question remains....will the FII's be able to pull the market higher or will the DII's succeed to bring it down ? Let us see what happens on Monday.

RIL will be coming up with results on Monday, 14th Oct 2013, so be ready for some action.

Let us have a look at the Option data of RELIANCE and see what is going on.

The strikes 900 and 820,  are significant levels to watch. If Reliance cheers the market then we may see it touching 900+, provided the highest open interest build up of OTM 900 CE shifts to higher levels, if not then we may see shorting happening at 900 and may even witness a fall of upto 820 levels before this Oct expiry. I feel shorting at 900 levels are the way to trade this counter as I do not see the highest open interest of OTM 900 CE being broken so easily.
Secondly if you compare the total open interest of OTM 840 PE with 900 CE , you will notice that the 900 CE has 61% more open contracts than 840 PE denoting that 900 will be a tough resistance for the stock. Watch for RIL to come near 900 and then take action.