Today’s inside day in NF and BNF showed FII’s also adopting a neutral ground ahead of the FED taper event later in the evening
The data of today shows 13508 long contracts added in futures against 10799 index shorts.
The options showed 10404 calls shorted against 10430 put shorts.
So fairly balanced and playing for the drop in volatility for tomorrow .
Meanwhile the leader of the rally which was the BNF has showed significant drop in OI in the past few days it has been in the 11900- 12300 range.
The BNF chart above shows that the long riders have reduced upto 15% of their holding from the peak high close of 12151 seen on 10th March.
Surely not a big amount yet but all that money has to come back to the table quickly if BNF has to move past it;s recent highs of 12370 F.
Meanwhile the 3-1-3 we noted on the MP charts continues to keep the market range bound.