Wednesday, November 21, 2012

Option Open Interest for 21-11-2012

Inference
Nifty opened flat to positive and after the initial dip towards 5560, the responsive buyers took control of the situation and moved the index above 5600 to close near the day’s high at 5614.80 a cool gain of 43.25 points. The broader market performed much better from the previous few days with 769 advances to 726 declines. The OI Table got a fresh lease of life, with bulls coming back with huge addition at 5500-5600PE levels.
  • Call option 5800 only added 2.52 lacs huge amount of OI with huge short covering seen at 5600 and below strike prices.
  • Put Option 5600-5400 added 35.1 lacs huge amount of OI with small profit booking seen at 5300 strike price.
  • Highest accumulation on Call option 5800 at 85.8 lacs & 5700 at 81.4 lacs whereas Put option 5500 at 87.2 lacs & 5400 at 80.5 lacs.
  • Nifty Open Interest is at 1,39,10,750 down by 1,61,050 with increase in price, most probably short covering.
  • Bank Nifty Open Interest is at 10,90,650 up by 65,750 with increase in price, most probably long build-up.
  • FII’s sold small 1.09 lacs of Futures, most probably short build-up, as their net OI also increased by 6.63 lacs and their average price per contract comes to around 4933.
  • FII’s future open contract as on date is 335520.
  • PCR Open Interest (Volume) has jumped above 1 on the back of huge addition at 5500-5600PE levels and now at 1.029.
  • Best support at 5500 with highest OI in the Option Table at 87.2 lacs, and below that at 5400 with OI of 80.5 lacs.
  • Resistance still very much at 5700, though saw some liquidation, and above that at 5800 with highest OI of 85.8 lacs.
  • Range as per Option Table is 5558 -5650 and as per VIX is 5569 - 5660 with 5605 as the Pivot.
Option Call for 22-11-2012
Buy Nifty 5600CE above 51 for targets of 59, 68 SL - 44
Buy Nifty 5600PE above 39 for targets of 52, 72 SL - 36

India VIX : 15.46 down by 0.35 points
Call OI : 41982000
Put OI : 43178700
PCR OI : 1.029
SMR : 15.03 (Neutral: Bulls are back, but will need a follow up action tomorrow or else the hibernating Bears may come back with a vengeance...)