Another bear day. FII sold contracts again. OI has increased further by 6.5L contracts. Price drop indicates further shorts entered into the system. Friends, you are not reading yesterday or day-before notes. It is the same today as well.
VIX has increased by 5%. PCR is also maintained at the same level. Surprising, considering that we have 90 point fall.
Here are my views:
1. The Desi MO indicator is at -66, VIX is 20 - PCR is 0.94. None of them are extreme readings still.
2. There is a hesitation at the retail level players to get into further shorts - only 6.5L contracts have been added to shorts - 8L plus contracts has been the norm.:)
3. No hesitation on part of FII - they have sold 24K contracts and entirely added to OI. They have not closed any shorts.
4. There has been huge put covering at 5400PE of 13L - but still PCR increased by 0.01. So, bulls are writing puts at lower levels - however, the addition is scattered from 4900PE,5000PE,5100PE. So, there is no base building happening at any lower levels.
5. All in all, friends do not try to catch a falling knife. At this juncture, I still can not see the bottom. As I said yesterday, we are in for some rough ride.
6. We may be in for some trending environment, as opposed to the recent trading the ranges. Do not be in a hurry to get long.
You can find the complete data sheet here.
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6 comments:
Hi Krishna,
Great Analysis..very informative, covers all imp points.
Thnx for sharing ur FNO sheet.
Thanks Kris,
We are in the timing band for a daily cycle bottom in equities. I just checked the US spx and they too are in for a bounce as their daily cycle is also stretched. Plus, Gold is in a blow-off mode with sentiment beyond bullish.
One big drive down will be a sign of capitulation.
Thanks kris, needless to say - great analysis. :)
US mkts in crash mode.
Good summary Kris. And the "Dumpathon" continues!
New post- roadmap
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