Monday, August 13, 2012

Option Open Interest for 13-08-2012

Inference
Nifty opened flat and oscillated in a very narrow range of 20 points keeping the previous day’s close as pivot, and when it looked like it will end the day flat, it broke out and made a dash towards the high of the day at 5350. The index ultimately closed at 5347.90 a small gain of 27.50 points. India VIX is at the low of the series at 16.01 with ATR getting narrower with each passing day. The OI Table looks bullish and Nifty is feasting on all the nay sayers, who still don’t believe in this rally.
  • Call option 5500-5600 added 3.59 lacs huge amount of OI, with huge liquidation seen at 5400 and lower strike prices.
  • Put Option 5400-5100 added 19.8 lacs huge amount of OI, with profit booking seen at 4800 and lower strike prices.
  • Highest accumulation on Call option 5500 at 85.7 lacs & 5400 at 69.1 lacs whereas Put option 5000 at 1.04 Cr & 5100 at 80.5 lacs.
  • Nifty Open Interest is at 2,52,93,350 up by 9,55,650 with increase in price, most probably huge long build-up.
  • Bank Nifty Open Interest is at 20,73,225 down by 19,550 with increase in price, most probably small short covering.
  • FII’s sold small 52.5 thousand of Futures, most probably short build-up, as their OI also increased by 11.03 lacs, and their average price per contract comes to around 5154.
  • FII’s future open contract as on date is 6.37 lacs.
  • PCR Open Interest (Volume) has jumped to 1.612 due to huge addition at 5300PE level.
  • Support at 5300 has been strengthened with huge addition of 8.8 lacs for the day, and below that at 5200PE with OI of above 80 lacs.
  • Resistance is still at 5400 with net OI above 69 lacs and above that at 5500 with OI of 85.6 lacs.
  • Range as per Option Table is 5293 -5386 and as per VIX is 5303 - 5393 with 5340 as the Pivot.
Option Call for 14-08-2012
Buy Nifty 5400CE above 48 for targets of 54, 61 SL - 44
Buy Nifty 5300PE above 40 for targets of 48, 61 SL - 37

India VIX : 16.07 down by 0.06 points
Call OI : 34393000
Put OI : 55432500
PCR OI : 1.612
SMR : 9.93 (Bullish: The CE writers are slowly moving away as they don’t want to be in front of the marauding Bulls, but remain cautious at higher levels...)