Nifty Analysis for Oct 3

***Technicals
Nifty is in terminal phase of downtrend and is correcting upwards.
Downside supports are at 3930, 3880.
Resistance will be at 4010, 4080.
Above 4120 downtrend will be terminated.

***Derivatives (October 1)
-Nifty (October) future premium increased to 16 points and around 3 lakh shares were added in open interest with increase in the cost of carry, indicating new long position at lower levels.
-Nifty call option add 12 lakh shares in open interest, whereas put option add 23 lakh shares in open interest. Thus open interest put-call ratio increased to 0.96.
-Implied volatility has decreased by 100-200 points which indicate stability in the coming days.

***Fund flow (September 30)
~FIIs net in Index fut. + 427 cr
~FIIs net in Stock Fut. + 230 cr
~FIIs in Cash Market + 84 cr
~Mut Funds in Cash Market + 402 cr (prov.)
***total fund flow + 1143 cr today & nifty was up by 71 points.
*** So far net fund flow of + 151 cr in October series. (But nifty is 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.

Happy trading and investing.
-Dr.Jignesh Shah