Rajandran R Telecom Engineer turned Full-time Derivative Trader. Mostly Trading Nifty, Banknifty, USDINR and High Liquid Stock Derivatives. Trading the Markets Since 2006 onwards. Using Market Profile and Orderflow for more than a decade. Designed and published 100+ open source trading systems on various trading tools. Strongly believe that market understanding and robust trading frameworks are the key to the trading success. Writing about Markets, Trading System Design, Market Sentiment, Trading Softwares & Trading Nuances since 2007 onwards. Author of Marketcalls.in and Co-Creator of Algomojo (Algorithmic Trading Platform for DIY Traders)

What is happening in the Index Futures and Options Open Interest?

1 min read

OI

If you understand the participation wise open interest post the budget retail traders are keep on building their shorts till to date and the FII’s are building their longs to the extreme till to date. This is a clear tug of war between retail traders and FII/FPI’s in index futures.

Nifty Futures Vs Client Index Futures (copy) (2)

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Retail Participation Index Future Positions
When Comes to Index Options retails are quite smart though they are the one who started writing 7000PE since the start of March Expiry series and they are the who is writing the 7200PE march strike and also the 7500CE. However on contrary FII/FPI’s are not writing options instead they are actively holding net naked put longs and net naked call longs. And steadily increasing their positions since the start of the series.

Nifty Vs FII Index Futures - www.marketcalls.in (copy) (1)

FII/FPI Index Future Positions
Overall retails are heavily underwater in Index Futures but made a good returns in options writing so far and holding a range bound view (7200-7500 range) and the FII/FPI made marginally little money in Index Futures and loosing in Put-Call naked spreads and holding bearish views in option front but heavily bullish in futures.

Nifty Vs FII Index Options - www.marketcalls.in (1)

FII/FPI Index Options Positions
Sentimental Update

Nifty EOD sentiment is holding negative for the last two days and also 7500PE holds the highest open interest in the march series which indicates retails are so far defending the 7500 zone. And the tug of war is making the nifty to move in a sideways either one of the future participants has to give up post the FED event.

Sentimental Update

What is my take?

Sharp dip in Nifty followed by a sharp reversal is still there in my thoughts. Which is already presented in the previous Tradezilla Complementary Webinar.

Rajandran R Telecom Engineer turned Full-time Derivative Trader. Mostly Trading Nifty, Banknifty, USDINR and High Liquid Stock Derivatives. Trading the Markets Since 2006 onwards. Using Market Profile and Orderflow for more than a decade. Designed and published 100+ open source trading systems on various trading tools. Strongly believe that market understanding and robust trading frameworks are the key to the trading success. Writing about Markets, Trading System Design, Market Sentiment, Trading Softwares & Trading Nuances since 2007 onwards. Author of Marketcalls.in and Co-Creator of Algomojo (Algorithmic Trading Platform for DIY Traders)

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