FnO Datasheet - 06-09-2011

My notes:

1. FII have sold another 1000 crore worth of futures. They sold 43K contracts and their OI has increased by 47K contracts. Further shorts? We are still far above our deciding zone of 4850-4900. So, we will stay neutral still. However, the OI increase from FII is looking higher and higher day by day. We may have a violent move soon.
2. PCR has decreased slightly to 1.14. It is surprising - as generally rallies increase the PCR. On the downside, 4700PE and 4800PE provide good support with 70L+ OI. On the other side, OI at any call strike did not exceed 60L. Option writing is suggesting a reasonably bullish picture.
3. On the other day I wrote in my notes that, all dips should be bought above 4900 and all rises should be sold below 4850. We had a dip to 4930 today which is spectacularly rewarded with 130 point rally.
4. The VIX is still standing at a very high value - causing concern to the option writers. Buying options at these high premiums is not a good way of trading. 
5. For the past 4-5 days, we are having highly volatile days with swings on both sides - but the net result is minimal. From 30th August, our net increase in NF is around 60 points - whereas each day we had swings of 100 points atleast on either side. So, an intense fight is on to gain control between bears and bulls. The struggle might continue for some more days. 
6. Equity selling from DII is taking an interesting pattern. They are selling on alternate days with small buying in between days. Past data shows that, DII sell equities closer to the top. Due to the restrictions on FnO trading for some of them, they will trade only on the equity segment. So, equity selling by DII is not good sign for the market. As we have noted in the trading room yesterday, DII equities plus FII FnO together decide the fate of the market. 
7. In spite of the gap downs, the bulls have not been really tested so far. We are having a 5K plus closing for the last 4 days. So, as Girish pointed out in the trading room, no M2M money has been deposited from bulls. How do they react when they have to face the heat is probably what would define the fate of this series. 
8. How do we proceed ahead? Well, my personal perception is... there is no business for anyone to be short above 5150 and long below 4850. Trade the in between range. But be cautious. So far, the FII OI looks shorts to me, and if it is correct, we may have some violent moves.
9. You can find the complete datasheet here.