Tuesday, November 20, 2012

Option Open Interest for 20-11-2012

Inference
Nifty opened in the positive above 5600 level on the back of good global cues but was immediately sold off. Nifty went on to make a low around 5550 and a small pullback towards the end saw the index close flat at 5571.55, a minute gain of 0.15 points. The broader market under performed the index at 430 advances to 1066 declines. The OI Table saw huge profit booking by the CE writers at 5700 and above strike prices.
  • Call option 5600 added 2.09 lacs huge amount of OI with huge profit booking seen at 5700 and above strike prices.
  • Put Option 5500-5300 added 8.84 lacs huge amount of OI with huge short covering seen at 5600 and above strike prices.
  • Highest accumulation on Call option 5800 at 83.3 lacs & 5700 at 82.7 lacs whereas Put option 5400 at 75.2 lacs & 5500 at 69.9 lacs.
  • Nifty Open Interest is at 1,40,71,800 down by 6,68,800 with no change in price, most probably long liquidation/short covering.
  • Bank Nifty Open Interest is at 10,24,900 down by 70,550 with not much change in price, most probably long liquidation/short covering.
  • FII’s bought huge 5.29 lacs of Futures, most probably short covering, as their net OI also decreased by 4.55 lacs and their average price per contract comes to around 4856.
  • FII’s future open contract as on date is 322262.
  • PCR Open Interest (Volume) after many days increased a bit to 0.923.
  • Support got better at 5500 with OI above 69.9 lacs, and below that at 5400 with OI of 75.2 lacs.
  • Resistance still very much at 5700, though saw some liquidation, and above that at 5800 with highest OI of 83.3 lacs.
  • Range as per Option Table is 5533 -5622 and as per VIX is 5525 - 5618 with 5590 as the Pivot.
Option Call for 21-11-2012
Buy Nifty 5600CE above 40 for targets of 67, 79 SL - 37
Buy Nifty 5600PE above 55 for targets of 71, 88 SL - 52

India VIX : 15.81 down by 0.87
Call OI : 43119500
Put OI : 39801700
PCR OI : 0.923
SMR : 17.13 (Bearish: Bears took a breather today and took some money off the table with some profit booking at 5700 and above strike prices. The only redeeming feature for the Bulls was that 5500CE saw some unwinding and OI now below 18 lacs...)