FnO Datasheet 03-09-2011

As I said, initially, next week is a shortened week. Remember further that we have had 4 continuous negative weeks. A moderately positive week is not an abnormal thing now, and may be the course of action to push out the week shorts.
This is what I said in my notes on 26th August. And we end a 3 day trading week with approximately 300 point rally. I have been wrong in expecting that a "moderately" positive week ahead.
My notes:

1. FII net bought 21K contracts. Their OI has increased by 48K contracts. Now, how to treat the OI addition? In general, we consider OI increase along with price increase as longs built into the system. However, the price increase is just 30 points - from 5003 close to 5034 close. Further, we are assuming that FII already have a lot of shorts in the system. So, we reserve the judgement of whether there are shorts or longs to a later day. 
2. PCR has increased from 1.03 to 1.15 indicating a bullish atmosphere. However, a close examination of OI increase at various strikes will reveal that 4400PE and 4700PE have both increased by 10L contracts each. Both the strikes being much below the current price, the huge OI addition is point of concern.
3. The NF OI has increased by 1.5L contracts - a low turnover. Probably new longs want a dip to enter and new shorts looking for higher levels to short.
4. Another important factor to be observed is the huge FII buying in equities of around 1150 crore. In my earlier notes, I have indicated that equity buying/selling is delayed cycle to the FnO cycle. First FII take long positions in FnO - Then they will start buying equities to induce a rally - and then they will start liquidating the FnO longs. So, in general a very high equity volumes generally indicates the end of current cycle and a run to the opposite is about to begin. For example, on 25th August, there has been 1440 crore equity sell off by FII. That was the end of short term bear cycle. The FII booked profits in FnO by inducing huge sell off with equity sell. Yesterday huge buying in equity is similar? Monday's action will reveal. 
5. So, what is coming in the next week? Well, we use our reference point 4850-4900 as the "bar-o-meter" ( Thanks Girish for the word. :) ) Buy all the dips above it - and Sell all the rises below it. There might be a couple of whipsaws, but the rewards will be equally good. 
6. You can find the complete datasheet here.

I have noted down your feedback. I will work on them to improve the notes and datasheet without losing my original theme and ideas. Thanks.