Thursday, October 11, 2012

Option Open Interest for 11-10-2012

Inference
Nifty opened flat around the previous day’s close and hovered within a narrow range for the better part of the morning session. After Europe opened, Nifty saw huge short covering to propel it towards the high of the day above the psychological level of 5700. The index ultimately closed at the high point of the day at 5708.05 a huge gain of 55.90 points. The OI Table saw support building up around 5600 and huge resistance around 5800.
  • Call option 5800-5900 added 12.00 lacs huge amount of OI, with small profit booking seen at 6000 and above level.
  • Put Option 5800-5600 added 11.36 lacs huge amount of OI, with huge profit booking seen at 5500 and below strike prices.
  • Highest accumulation on Call option 5800 at 83.2 lacs & 5900 at 83.1 lacs whereas Put option 5600 at 70.3 lacs & 5500 at 57.4 lacs.
  • Nifty Open Interest is at 2,53,69,700 down by 2,35,800 with increase in price, most probably huge short covering.
  • Bank Nifty Open Interest is at 12,22,200 up by 74,650 with increase in price, most probably long build-up.
  • FII’s sold a few 0.86 lacs of Futures, most probably short build-up as their Net OI also increased by 19.72 lacs, and their average price per contract comes to around 5158.
  • FII’s future open contract as on date is 6.158 lacs.
  • PCR Open Interest (Volume) is still below 1 at 0.959.
  • Support has moved up at 5700, with huge addition for the day and now OI above 53 lacs and below that at 5600 with OI above 70.3 lacs.
  • Super Resistance at 5800 with highest OI in Option Table at 83.2 lacs and above that at 5900 with OI above 83.1 lacs.
  • Range as per Option Table is 5645 -5742 and as per VIX is 5659 - 5757 with 5705 as the Pivot.
Option Call for 12-10-2012
Buy Nifty 5700CE above 89 for targets of 105, 121 SL - 78
Buy Nifty 5700PE above 64 for targets of 80, 109 SL - 59

India VIX : 16.49 down by 0.34 points
Call OI : 40886400
Put OI : 39222050
PCR OI : 0.959
SMR : 17.19 (Neutral : Bulls have crawled back in, but still much to be done as PCR is still below 1 and only support of note is at 5600 with OI of just 70 lacs, whereas 5800-5900CE have OI more than 83 lacs in each...)