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Data Trends

Data Trend 6th July 2020

First the thumb rule for the data to form a view is presented below followed by today’s data and market movement.

  • For BULLISH view – LONG in FUT + (Short in PUTS/long in CALLS) OR LONG in FUT + (Short in PUTS/unwinding in CALLS)
  • For Bearish View – SHORT in FUT + (Short in CALLS/long in PUTS) OR SHORT in FUT + (Short in CALLS/unwinding in PUTS)
  • For Neutral View – First Indication: Contradicting position in Fut at almost about the same prices with no follow-up activity from either LONG/SHORT fut side later in the day of Big qty. Second Indication: Short in options on both calls/puts and no major unwindings on near strikes.

Futures data

Puts data 10700 PE

Calls data 10700 CE

Based on the data you can observe the following

Futures data – More Longs than shorts and follow-up buying by 10:10 AM

PE data(10700PE) – Shorts in PE dominating

CE data(10600CE) – No significant shorts in CE

So the data was clearly pointing a LONG side trade and we rallied nicely towards 10800 later in the day.

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