Monday, September 17, 2012

Option Open Interest for 17-09-2012

Inference
Another gap-up saw Nifty open around 5640, but profit booking at the highs saw the index nosedive below 5600 level to 5585. The RBI governor tried to infuse some positivity with 25bps CRR cut which saw the index again above 5600. The day closed at 5610.00 a small gain of 32.35 points, the highest close in 14 months. The Option Table saw huge addition by the PE writers at 5700-5500 and the CE writers were not far behind adding 29.8 lacs at 5700-5800 level.
  • Call option 5700-6000 added 42.4 lacs huge amount of OI, with huge liquidation seen at 5600 and below strike prices.
  • Put Option 5800-5500 added 30.0 lacs huge amount of OI, with profit booking seen at 5200 and below strike prices.
  • Highest accumulation on Call option 5600 at 67.6 lacs & 5700 at 61.9 lacs whereas Put option 5300 at 85 lac & 5400 at 75.3 lacs.
  • Nifty Open Interest is at 2,12,04,400 up by 10,49,950 (another addition of 10 lacs+) with increase in price, most probably huge long build-up.
  • Bank Nifty Open Interest is at 20,14,925 up by 2,74,850 with increase in price, most probably huge long build-up.
  • FII’s bought huge 20.77 lacs Futures in addition to 19.67 lacs bought on Friday, most probably long build-up as their net OI also increased by 10.71 lacs, and their average price per contract comes to around 5547.
  • FII’s future open contract as on date is 4.55 lacs.
  • PCR Open Interest (Volume) has increased to highs of the series at 1.526 due to huge liquidation at 5600-5500CE Levels.
  • Initial support at 5500 with huge addition for the day at 8.99 lacs for the day and below that at 5400 with OI of 75.3 lacs.
  • Resistance as per Option Table right now is at 5700 with OI of just above 61.9 lacs.
  • Range as per Option Table is 5567 -5660 and as per VIX is 5558 - 5662 with 5590 as the Pivot.
Option Call for 18-09-2012
Buy Nifty 5600CE above 70 for targets of 86, 109 SL - 66
Buy Nifty 5600PE above 47 for targets of 60, 74 SL - 44

India VIX : 17.78 up by 2.40 points
Call OI : 33234250
Put OI : 50729550
PCR OI : 1.526
SMR : 11.65 (Bullish: Bulls are in full control with Bears running for cover, but today’s price action points to fatigue setting-in in Nifty, time to be cautious with longs...)