Saturday, September 1, 2012

Option Open Interest for 31-08-2012

Inference
The promise shown by the Bulls on Expiry day was washed away with the Bears in full control from the word go. The index struggled to move past 5300 and settled towards the lows of the day at 5258.50 a huge loss of 5258.50 points. After 4 weeks of continuous gains, the Nifty lost 128.20 points or approx 2.38 Week on week basis. Coming back to Option Table, the CE writers are gaining control with strike prices 5400-5600 under their belt.
  • Call option 5200-5800 added 47.64 lacs huge amount of OI, with not much change in other strike prices.
  • Put Option 5200-4800 added 33.49 lacs huge amount of OI, with small liquidation seen at 5300 and above strike prices.
  • Highest accumulation on Call option 5600 at 49.6 lacs & 5400 at 48.5 lacs whereas Put option 5200 at 58.2 lacs & 5000 at 45.7 lacs.
  • Nifty Open Interest is at 1,95,96,800 down by 8,97,200 with decrease in price, most probably huge long liquidation.
  • Bank Nifty Open Interest is at 15,89,025 up by 60,800 with decrease in price, most probably huge short build-up.
  • FII’s sold huge 15.85 lacs Futures, most probably long liquidation as their net OI also decreased by 18.46 lacs, and their average price per contract comes to around 5254.
  • FII’s future open contract as on date is 4.13 lacs.
  • PCR Open Interest (Volume) is very precariously placed at 1.039.
  • Best support at 5200 with highest OI of 58.2 lacs and below that at 5100-5000.
  • Huge resistance at 5400 with OI of 48.5 lacs and above that at 5500-5600 range with OI above 48 lacs each.
  • Range as per Option Table is 5221 -5312 and as per VIX is 5211 - 5306 with 5270 as the Pivot.
Option Call for 03-09-2012
Buy Nifty 5300CE above 90 for targets of 102, 118 SL - 84
Buy Nifty 5300PE above 96 for targets of 108, 121 SL - 89

India VIX : 17.30 up by 0.63 points
Call OI : 28501150
Put OI : 29624400
PCR OI : 1.039
SMR : 16.64 (Bearish: The first day of the series saw huge downside momentum with Bears on the verge of taking control of the Option Table. A follow up action is still required to stamp authority...)