Here is a look at the total OI buildup in NF and BNF as the Nifty made new highs today and broke above 6355
The NF Open Interest is just a little under the peak OI hit early in FEB which suggests that there is still some money and inventory on the sidelines wanting to come in.
The BNF chart below shows the reason for the strong upmove seen since Tuesday
This chart is showing rising OI and rising price as Banks lead the market higher.
Meanwhile the FII’s continued with the Bullish stance of yesterday
Short puts still outnumber long puts for the series though the long put addition today was a shade more than the short puts.
The 16425 Index Futures short reduction today puts us on a standby alert for a contrarian reversal signal we have been picking up for these traders.
At today’s close the short position held by FII’s was a mere 55141 contracts.
The last time the index had closed at 6359 on Nov 3 the FII’s held 51341 contracts in shorts.
That time the percentage of the shorts held by FII’s in index Futures had hit 8.96%.
We hit the mark at 12.43 % today.
Starting Monday we should see a rapid adjustment coming in positions held by FII’s first on the options side in the form of long puts and then the index.