Saturday, October 6, 2012

Option Open Interest for 05-10-2012

Inference
Nifty opened up above yesterday’s close but was immediately sold off. The real scare came 30 minutes after the open, when an erroneous sell order executed to the tune of 650 Cr moved the index to the lows at 4888.20 and in the process Lower Circuit was activated. When the market re-opened, Nifty came up again above 5700 level. The index after all the drama for the day ended at 5746.95 a loss of 40.65 points. The OI Table saw huge addition at 5800CE.
  • Call option 5600-6100 added 39.89 lacs huge amount of OI, with small profit booking seen at 6200 and above levels.
  • Put Option 5500 added 5.45 lacs huge amount of OI, with huge liquidation seen at 5600-5700 strike prices.
  • Highest accumulation on Call option 6000 at 67.2 lacs & 5800 at 64.6 lacs whereas Put option 5500 at 55.6 lac & 5700 at 54.7 lacs.
  • Nifty Open Interest is at 2,64,02,750 up by 7,57,500 with decrease in price, most probably huge short build-up.
  • Bank Nifty Open Interest is at 11,49,425 down by huge 1,28,550 with decrease in price, most probably long liquidation.
  • FII’s sold huge 10.37 lacs of Futures, most probably short build-up as their Net OI also increased by 13.43 lacs, and their average price per contract comes to around 5600.
  • FII’s future open contract as on date is 5.732 lacs.
  • PCR Open Interest (Volume) is juggling around 1.2 and now has gone below to 1.108.
  • Support still at 5700 though some liquidation was seen, still has the second highest OI on the PE side at 54.7 and below that at 5600 with OI of above 54.4 lacs.
  • Resistance at 5800 with huge addition for the day at 15.9 lacs with total OI above 64.5 lacs and above that at 6000 with highest OI of 67.2 lacs.
  • Range as per Option Table is 5702 -5800 and as per VIX is 5696 - 5797 with 5760 as the Pivot.
Option Call for 08-10-2012
Buy Nifty 5800CE above 79 for targets of 102, 133 SL - 74
Buy Nifty 5800PE above 93 for targets of 122, 152 SL - 88

India VIX : 16.78 up by 0.34 points
Call OI : 35408550
Put OI : 39221450
PCR OI : 1.108
SMR : 15.15 (Bullish to Neutral: The Indian Stock market is on the mercy of a few hundred crores, which can tilt the index by a 900 points within a few seconds, investors need to be careful or else can get wiped out in a jiffy...)