Saturday, September 15, 2012

Option Open Interest for 14-09-2012

Inference
Nifty opened huge gap-up above 5500 buoyed by the US Fed move to infuse liquidity in the form of bond purchase to the tune of S40 billion per month. The index surged 142.30 points, the highest single day gain this year to end at 5577.65 though Inflation came in at 7.55%, higher than expected. The Option Table saw huge addition by the PE writers to the tune of 74 lacs at 5700-5500 level and huge liquidation was seen at 5600-5400CE.
  • Call option 5700-6000 added 27.0 lacs huge amount of OI, with huge liquidation seen at 5600 and below strike prices.
  • Put Option 5700-5400 added 77.52 lacs huge amount of OI, with profit booking seen at 5300 and below strike prices.
  • Highest accumulation on Call option 5600 at 81.6 lacs & 5700 at 54.2 lacs whereas Put option 5300 at 85.1 & 5400 at 75.3 lacs.
  • Nifty Open Interest is at 2,01,54,450 up by 14,58,700 (highest single day addition in this series) with increase in price, most probably huge long build-up.
  • Bank Nifty Open Interest is at 17,40,075 up by 19,025 with increase in price, most probably huge long build-up.
  • FII’s bought huge 19.67 lacs Futures, most probably long build-up as their net OI also increased by 15.03 lacs, and their average price per contract comes to around 5497.
  • FII’s future open contract as on date is 4.34 lacs.
  • PCR Open Interest (Volume) jumped up to 1.466 due to huge addition at 5600 & 5500PE and short covering at 5400 and 5500CE.
  • Initial support has moved up to 5500 with huge addition for the day at 30.37 lacs for the day and below that at 5400 with OI of 75.3 lacs.
  • Resistance are falling by the wayside every day, though 5600 covered huge OI but still looks like initial resistance and above that at 5700 with OI of just above 54.2 lacs.
  • Range as per Option Table is 5519 -5613 and as per VIX is 5533 - 5623 with 5560 as the Pivot.
Option Call for 17-09-2012
Buy Nifty 5600CE above 48 for targets of 58, 69 SL - 43
Buy Nifty 5500PE above 31 for targets of 39, 53 SL - 28

India VIX : 15.38 down by 0.29 points
Call OI : 33101650
Put OI : 48541750
PCR OI : 1.466
SMR : 10.49 (Bullish: So Bulls did stamp their authority and how, they just stream rolled over the Bears and in a single day captured both 5400 and 5500 strike. SMR at 10.49, time to be cautious with longs...)