Thursday, August 16, 2012

Option Open Interest for 16-08-2012

Inference
Nifty opened flat and traded within a narrow range of 34 points for the full day and ultimately closed around the lows of the day at 5362.95, a small loss of 17.40 points. It was a day when neither the bull nor the bear we able to stamp their authority, but the Bears still made it sure that 5500 stays out of bounds for the Bulls. Huge addition was seen at 5400-5600 CE option.
  • Call option 5300-5600 added 12.7 lacs huge amount of OI, with huge liquidation seen at 5200 and lower strike prices.
  • Put Option 5100 & 5300 added small amount of OI, with profit booking seen at 5000 and lower strike prices.
  • Highest accumulation on Call option 5500 at 92.4 lacs & 5400 at 65.5 lacs whereas Put option 5000 at 1.03 Cr & 5300 at 86.3 lacs.
  • Nifty Open Interest is at 2,58,39,500 down by 1,19,650 with decrease in price, most probably long liquidation.
  • Bank Nifty Open Interest is at 19,81,275 down by 30,525 with decrease in price, most probably huge long liquidation.
  • FII’s sold 25.05 thousand of Futures, most probably short build-up, as their OI also increased by 1.90 lacs, and their average price per contract comes to around 5169.
  • FII’s future open contract as on date is 6.48 lacs.
  • PCR Open Interest (Volume) is decrease a bit due to huge addition at 5300-5600CE levels and now at 1.569.
  • Support at 5300 is still good enough with OI above 86.3 lacs, and below that at 5200-5000 level with huge OI at each strike price.
  • Resistance is at 5400 but still not full-proof with OI of just 65.5 lacs, but above that Wall of China at 5500 with OI of 92.4 lacs.
  • Range as per Option Table is 5323 -5414 and as per VIX is 5319 - 5407 with 5360 as the Pivot.
Option Call for 17-08-2012
Buy Nifty 5400CE above 50 for targets of 56, 66 SL - 47
Buy Nifty 5400PE above 63 for targets of 69, 76 SL - 59

India VIX : 15.69 up by 0.05 points
Call OI : 34651000
Put OI : 54365200
PCR OI : 1.569
SMR : 10.00 (Bullish: Bears did have a look in, but do we have a change of trend?, No, not right now, but bulls need to be cautious at higher levels...)