Saturday, June 9, 2012

>Option Open Interest for 08-06-2012

Inference
Nifty opened weak and stayed below the dotted lines for the better part of the day. The responsive buyer with the help of short covering around the last one hour took everyone by surprise and Nifty did a 100 pointer from the lows of the day to close at 5068.35, gain of 18.70 points. Today’s up-move was basically based on huge short covering and huge Open Interest addition at 5000PE level.
  • Call option 5100-5200 added 3.75 lacs huge amount of OI with liquidation seen at 5000 and lower strike prices.
  • Put Option 5100-4700 added 16.5 lacs huge amount of OI, with not much change in other strike prices.
  • Highest accumulation on Call option 5100 at 50.3 lacs & 5200 at 47.9 lacs whereas Put option 4800 at 75.3 lacs & 4900 at 59.1 lacs.
  • Nifty Open Interest is at 1,56,60,450 down by 3,05,900 with increase in price, most probably huge short covering.
  • Bank Nifty Open Interest is at 24,57,775 up by 21,700 with increase in price, most probably huge long build-up.
  • FII’s sold 3.3 lacs Futures most probably short build-up, as their OI also increased by 0.74 lacs, and their average price per contract comes to around 4970.
  • FII’s future open contract as on date is 3.48 lacs.
  • PCR Open Interest (Volume) is at a very healthy level of 1.698 due to huge addition at 5000PE.
  • Support for the series is getting cemented around 4900 with OI of above 60 lacs and below that at 4800 with highest OI of 75.3 lacs.
  • Resistance is right now at 5100 with OI of 50.3 lacs, but it looks fragile and call writers are not feeling secure with writing at higher levels also.
  • Range as per Option Table is 4994 -5111 and as per VIX is 5006 - 5131 with 5040 as the Pivot.
Option Call for 11-06-2012
Buy Nifty 5100CE above 79 for targets of 96, 114 SL - 70
Buy Nifty 5000PE above 89 for targets of 108, 140 SL - 86

India VIX : 23.47 down by 0.17 points
Call OI : 31703350
Put OI : 53838450
PCR OI : 1.698
SMR : 13.82 (Bullish: Small correction was pounced upon by the Bulls, now 4900 level has also been captured...)