FOR OCT 10

*******Nifty Charts
The first chart is usefull only to investors not traders.
It clearly shows positive divrgence means our market will witness very fast recovery or rally sooner then later.


Second chart is for traders which shows that relief rally can come anytime now as all indicators are oversold. ***Technicals
Nifty is in terminal phase of downtrend and is in process of intermediate bottom formation.
Today bottom formed at 3329.

***Derivatives (October 8)
-Nifty (October) future premium decreased to 22 points and around 3 lakh shares were added in open interest with decrease in the cost of carry, indicating new short position at higher levels.
-Nifty call option add 20 lakh shares in open interest, whereas put option add 6 lakh shares in open interest. Thus open interest put-call ratio decreased to 0.77.
-Implied volatility has increased by 200-300 points which indicate high volatility in the coming days.

***Fund flow (October 6)
~FIIs net in Index fut. – 1010 cr
~FIIs net in Stock Fut. – 239 cr
~FIIs in Cash Market - 1121 cr
~Mut Funds in Cash Market - 231 cr
***total fund flow – 2601 cr today & nifty was down by 216 points.

***Fund flow (October 7)
~FIIs net in Index fut. + 188 cr
~FIIs net in Stock Fut. – 85 cr
~FIIs in Cash Market - 548 cr
~Mut Funds in Cash Market - 307 cr
***total fund flow – 752 cr today & nifty was up by 4 points.
*** So far net fund flow of - 4645 cr in October series. (Nifty is also down in October series).

***Past fund flow
-8071 cr in June series (-520), closed at 4315.
+6474 cr in July series (+18), closed at 4333.
-6641 cr in August series (-119), closed at 4214.
-6903 cr in September series (-104), closed at 4110.
*******so in a nutshell, net fund flow of
– 15141 cr after May closing of 4835,
- 7070 cr after June closing of 4315.

Happy trading and investing.
-Dr.Jignesh Shah