Tuesday, July 31, 2012

Option Open Interest for 31-07-2012

Inference
The index opened above the dotted line and meandered along without much purpose waiting for the RBI’s monetary policy, and the policy did disappoint with just a small cut on SLR from 24% to 23%. Nifty nose-dived below the 5160 level where the responsive buyers took control and Nifty galloped away to the high of the day at 5234. The index ultimately closed just below today’s high at 5229.00, a gain of 29.20 points. OI Table got some face lift with 5100PE now looking like a good enough support on the downside.
  • Call option 5200-5700 added 12.2 lacs huge amount of OI, with small liquidation seen at 5100 and lower strike prices.
  • Put Option 5300-5100 and 4900-4700 added 33.5 lacs huge amount of OI, with small profit booking at 5000 strike price.
  • Highest accumulation on Call option 5400 at 57.6 lacs & 5500 at 53.9 lacs whereas Put option 5000 at 82 lacs & 5100 at 56.7 lacs.
  • Nifty Open Interest is at 2,21,93,100 up by 1,48,750 with increase in price, most probably huge long build-up.
  • Bank Nifty Open Interest is at 20,65,850 down by huge 29,175 with small decrease in price, most probably some long liquidation.
  • FII’s bought 4.12 lacs Futures, most probably long addition, as their OI also increased by 5.15 lacs, and their average price per contract comes to around 5116.
  • FII’s future open contract as on date is 5.07 lacs.
  • PCR Open Interest (Volume) is at a healthy value of 1.373.
  • Support at 5100 looks good with addition of 3.95 lacs of OI for the day and OI now around 57 lacs below that at 5000 with highest OI of 82 lacs.
  • Resistance at 5300 with OI above 41.5 lacs and above that at 5400-5500.
  • Range as per Option Table is 5155 -5264 and as per VIX is 5185 - 5273 with 5200 as the Pivot.
Option Call for 01-08-2012
Buy Nifty 5300CE above 59 for targets of 69, 80 SL - 54
Buy Nifty 5200PE above 84 for targets of 98, 117 SL - 79

India VIX : 16.01 down by 0.59 points
Call OI : 30811650
Put OI : 42295000
PCR OI : 1.373
SMR : 11.66 (Bullish: Nifty Future closed above Monthly VAH of 5240, Bears need to try for next month...)