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ARE YOU TRADING INDEX WITH CONFIDENCE ???

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In market there is 4 players:

1. FII - Foreign Institutional Investors
2.PRO - Proprietary traders.
3. DII - Domestic institutional Investors
4. CLIENTS - Retail Investors.


So if you are trading in derivatives than one should know what FII and PRO are doing because FII and PRO are having good control of future and option market. So their positions most of the time decides the market trend.

Whereas DII are having less participation in derivative segment. They are more active in cash segment. (Delivery based)

Clients i.e. Retail investors you will see that they are always on opposite side of the market trend and thus they are losing money most of the time in market.

In November month , FII and PRO were on mandi side on most of the days and that too from 10350--10450 levels. To show you what each of these 4 players doing.. just study the following table which represents the data of index option for last week of november month:

DATE FII PRO DII CLIENT NIFTY BANK NIFTY
27-11-17 -35255 -19200 0 54456 10400 25892
28-11-17 -22166 -69179 0 91345 10370 25846
29-11-17 22 -100 0 77 10361 25796
30-11-17 11928 10106 7651 -29684 10227 25332
1/12/2017 -92298 -21235 -765 114298 10122 25192


So, if one closely observe the above table it shows clearly that FII and PRO both were in mandi position i.e. short position in index option on 27th and 28th November when nifty was around 10400-10350 and banknifty was around 25800-25900 whereas client as usual on opposite direction were in long position.

On expiry date i.e. 30th november FII and PRO both rollover their short position by closing november positon in profit as market fall down and closed on that date nifty @10227 and banknifty@25332. where as client closed its position in loss as they always remains on opposite side of the market.

On 1st december FII and PRO both were on mandi side as they rollover to december month expiry and nifty closed@10122 and banknifty@25192. 

So if you want to trade confidently in index derivative and option segment than this small information too helps a lot in knowing what big players are doing in market.

Our November month nifty trades : http://justbanknifty.blogspot.in/2017/11/trade-nifty-future-with-confidence.html



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