Monday, August 20, 2012

Option Open Interest for 17-08-2012

Inference
Nifty opened above the previous day’s close and moved higher to touch the top of the day at 5400, but a late sell off saw the index nose-diving towards 5340. A small pullback towards the end saw the index close flat at 5366.30, a negligible gain of 3.35 points and on a Week on Week basis it gained 45.90 points of 0.86%. Based on the OI Table it looks like a range of 5300-5450 with OI above 90 lacs at 5300PE and 5500CE level.
  • Call option 5300-5500 added 5.91 lacs huge amount of OI, with huge liquidation seen at 5100 and lower strike prices.
  • Put Option 5500-5300 added 14.88 lacs huge amount of OI, with profit booking seen at 5100 and lower strike prices.
  • Highest accumulation on Call option 5500 at 93.7 lacs & 5400 at 67.3 lacs whereas Put option 5000 at 1.01 Cr & 5300 at 91.5 lacs.
  • Nifty Open Interest is at 2,56,09,100 down by 2,30,400 with no change in price, probably long liquidation/short covering.
  • Bank Nifty Open Interest is at 19,36,400 down by 44,875 with decrease in price, most probably huge long liquidation.
  • FII’s bought huge 6.44 lacs of Futures, most probably long build-up, as their OI also increased by 4.10 lacs, and their average price per contract comes to around 5152.
  • FII’s future open contract as on date is 6.56 lacs.
  • PCR Open Interest (Volume) increased to 1.578 due to huge addition at 5300-5500PE.
  • Support at 5300 is rock solid with OI above 91.5 lacs, and below that at 5200-5000 level with huge OI at each strike price.
  • Resistance is at 5400 with OI of just 67.3 lacs, but above that Wall of China at 5500 with OI of 93.7 lacs.
  • Range as per Option Table is 5324 -5414 and as per VIX is 5322 - 5410 with 5360 as the Pivot.
Option Call for 21-08-2012
Buy Nifty 5400CE above 45 for targets of 58, 77 SL - 42
Buy Nifty 5400PE above 59 for targets of 76, 95 SL - 54

India VIX : 15.73 up by 0.04 points
Call OI : 34760700
Put OI : 54844700
PCR OI : 1.578
SMR : 9.97 (Bullish: Bulls still very much in control but the momentum seem withering, as writing for the last few days, need to be cautious at higher levels...)