FnO Datasheet 05-09-2011

In my last notes, I observed that huge equity buying generally will come towards the end of a rally. Today it materialized in the anticipated way.
My notes:

1. As expected the market opened gap down - preventing any day traders to get benefit from the fall. In fact at the end-of-day it is bulls who might have made more money and felt more secure. Turnover was decent.
2. FII have net sold 23K contracts - but their OI has increased by 72K contracts - quite huge. Price fall along with OI increase indicates shorts entering the system. However, we are still above our Bar-O-Meter 4850-4900 zone. Therefore, we will not get biased as yet. But, 6.2L contracts of OI is quite high which is a matter of concern.
3. NF OI has increased by 14.5L contracts. Yesterday also the OI increase is almost similar. 2.5 crore contract OI by 5th of the month. However, the equity volumes are not at a matching level. So, it is possible that the Institutions are positioning themselves towards a big push later in the month. As of now we maintain a slight bearish bias. However, as I said earlier, we can use 4850-4900 as the SAR zone. Considering the OI buildup  we might be in for some big move this series as well.
4. PCR has increased slightly to 1.17. Again, point of concern is the 10L addition at 4400PE. In between 4800PE looks a decent support. Though 2 consecutive days of 10L+ addition at 4400PE is a matter of concern - as long as we are above 4850, nothing to be unduly worried of.
5. Another interesting observation in the trading room has been the movement of index in the last 30 minutes. The Friday buying led to a gap down opening today. Looks a repeat might happen tomorrow. Now, you know what to do when it happens for the third time. :)
6. On 29th August, NF closed at a price of 5003. Today on 5th September, a week later, we closed at 5010.50 - a difference of 7 points. The VIX has increased from 24.88 to 27.83. So, option premiums have increased further. These are days where a trader should be delighted. However, if you are on the wrong side initially, it can start hitting your stop loss from both sides. Hope you are making the right moves.
7. You can find the complete datasheet here.