FII Derivative Data Analysis for 28 March trade

Let me explain what exactly is GAAR
GAAR (General Anti-Avoidance Rules) is a taxation regulation that will make investors pay tax who otherwise legally avoid it.Under GAAR, the revenue authorities will get to tax transactions or arrangements which were conducted or set up just to get tax benefits.So routing transactions through tax havens like Mauritius for achieving the tax benefit will not be allowed.
Why FII are worried ?
FII invest in india using P-notes  P-notes are financial instruments used by investors or hedge funds that are not registered with Sebi to invest in Indian securities. The investor does not have to fulfill KYC (Know Your Client) norms here and gets to invest whatever amount he wants by keeping his own identity hidden.
There is confusion in the market whether the gains from these instruments will also be taxed. Now, with the finance ministry’s statement, there could be temporary relief, but FIIs might not be wholly convinced. 
So basically till FM leave P note out of purview of GAAR FII will be happy as they do not have to reassess there taxation strategy and move funds from Mauritius to Singapore.
This was the reason for the Volatility which we are seeing from past 2 days in market and will continue to next 2 days also.


Below is my Interpretation of FII OI data Sheet for 27-Mar-12.

1. FII  sold 20515  Contracts of NF worth 555 cores OI also increasing  by 70131  contracts.

2. As Nifty Futures was up  by 60  points and OI has increased by 70131  contracts means  institutions have covered shorts in NF as net OI has risen.
3. Nifty  for the 3 day was unable to move above 50 SMA@5295. Again saving grace comes that Bulls are protecting 200 SMA@5153 Till Nifty is trading above this level bulls still have a chance for Pullback.

4. Nifty March  OI has decreased   by ....

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