Nifty: Finally @ 16K Game of Positions Analysis

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This is not a trade recommendation. But a study to showcase the importance of understanding Positions of various participants viz
- the retail traders
- FIIs and
- Proprietary traders

can give insights of directional trade. Despite World market being sideways, Nifty has managed to rise and march to 16K.

Previously when Nifty was at 15840, we had suggested that the current rise was not supported by rise in Open Interest. Subsequently we saw a fall in Nifty price up to 15745 odd levels. But from there on Nifty has bounced back stronger.

Those who have looked at the F&O data as I have been suggesting, the possibility of 16 K this time was clearly visible to them.

Take a look for yourself

F&O Trade analysis of 02 Aug 2021

Futures data
• Retail participants added 12.43 K Long contracts & added 6.79K Short contracts
• FIIs added 8.76K Long contracts & added 8.08K Short contracts
• Pro traders added 1.75K Long contracts & added 7.12K Short Contracts

Call option
• Retail traders added 1.70 Lakh Call Longs & added 2.51 Lakh Call shorts
• FIIs added 1.03 Lakhs Call Longs & added 44.64 K Call short
• Pro traders added 1 Lakh Call Longs & added 78 K Call shorts

Put option
• Retail traders added 4.02 Lakh Put Long & added 3.57 Lakh Put shorts
• FIIs added 46.55 K Put Long & added 47.33 K Put shorts
• Pro traders added 75.71 K Put Long & added 1.34 Lakh Put Short contracts

Net Open Interest has increased by 7.82% for a 2nd day in a row. which is a healthy sign for trend followers.

Retail Participants were seen taking Net Long Index Futures. However their position in Options (net Call option sellers and aggressive Put buyers ) suggest bias is bearish.
FIIs on the other hand have Net neutral stance on Index Futures positions but in Options are Net Call buyers and Net Put sellers giving a positive bias
Pro traders have taken Net short position in Index Futures. However, they have been Net call buyers and aggressive Put sellers giving them an overall positive bias.

The Positional stance gave a clear picture where the Smart money is putting it's money. And the results are in front of you.

Choice is yours... whether you want to put in efforts in study and research or continue playing blind in the market.

Regards,


Nota
Target 3 done today
Nota
Once again we see Nifty giving up from T3 levels....
Beyond Technical AnalysisNIFTYtradingviewTrend Analysis

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