Wednesday, August 15, 2012

Option Open Interest for 14-08-2012

Inference
Nifty opened flat and kept moving in a narrow range waiting for the Inflation data which came in around 12 Noon much better than expected at 6.87, whereas the consensus was around 7.25. The participant took it as the ticket to some softening by RBI governor in the coming policy and moved the index vertically up by about 50 points from the lows. Good addition was seen in Nifty with OI now around 2.6 Cr and the Option Table also saw huge addition at 5300PE Level with OI now above 86 lacs..
  • Call option 5500-5800 added 9.95 lacs huge amount of OI, with huge liquidation seen at 5400 and lower strike prices.
  • Put Option 5400-5300 added 16.01 lacs huge amount of OI, with profit booking seen at 5200 and lower strike prices.
  • Highest accumulation on Call option 5500 at 89.7 lacs & 5400 at 62.1 lacs whereas Put option 5000 at 1.05 Cr & 5300 at 86 lacs.
  • Nifty Open Interest is at 2,59,59,150 up by 6,65,800 with increase in price, most probably huge long build-up.
  • Bank Nifty Open Interest is at 20,11,800 down by 61,425 with increase in price, most probably huge short covering.
  • FII’s bought huge 5.42 lacs of Futures, most probably long build-up, as their OI also increased by 3.78 lacs, and their average price per contract comes to around 5193.
  • FII’s future open contract as on date is 6.44 lacs.
  • PCR Open Interest (Volume) is increasing by the day and now at 1.626 due to huge addition at 5300PE level.
  • Support at 5300 now looks un-breakable with OI above 85.9 lacs, and below that at 5200-5000 level with huge OI at each strike price.
  • Resistance is still at 5400 but looks vulnerable, with huge liquidation, and above that at 5500 with OI of 89.7 lacs.
  • Range as per Option Table is 5323 -5416 and as per VIX is 5336 - 5424 with 5360 as the Pivot.
Option Call for 16-08-2012
Buy Nifty 5400CE above 61 for targets of 71, 82 SL - 55
Buy Nifty 5400PE above 62 for targets of 74, 88 SL - 57

India VIX : 15.64 down by 0.37 points
Call OI : 33689600
Put OI : 54773950
PCR OI : 1.626
SMR : 9.62 (Bullish: With each passing day, the Bulls are steadily adding Open Interest in Nifty and in Option Table, and now 5300 is looking out of bounds for the Bears...)