Wednesday, January 16, 2013

Option Open Interest for 16-01-2013

Inference
Nifty opened flat, just below the previous day’s close and remained weak throughout the session going below 6000 spot but recovered just to close at 6001.85, still a huge loss of 54.75 points. The only saving grace was that the fall was basically due to long liquidation and not much shorts were added to the system. The broader market also performed miserably, with 328 advances to 1197 declines. The OI Table saw huge unwinding at 6000PE level.
  • Call option 5900-6200 added 15.71 lacs huge amount of OI with profit booking seen at 6300 and above strike prices.
  • Put Option 5800-5700 added 3.63 lacs huge amount of OI with huge short covering seen at 6000 and above strike prices.
  • Highest accumulation on Call option 6200 at 86.1 lacs & 6100 at 64.2 lacs whereas Put option 5900 at 78 lacs & 5800 at 74.7 lacs.
  • Nifty Open Interest is at 1,45,31,200 down by 9,71,200, with decrease in price, most probably huge long liquidation.
  • Bank Nifty Open Interest is at 10,34,225 down by 1,51,725, with decrease in price, most probably huge long liquidation.
  • FII’s sold 6.45 lacs of Futures, most probably long liquidation, as their net OI decreased by 4663 contract and the average price per contract comes to around 6010.
  • FII’s future open contract as on date is 248475.
  • PCR Open Interest (Volume) crashed down to 1.287.
  • Support at 6000PE looks vulnerable with huge liquidation of over 10.8 lacs for the day and below that at 5900 with OI of 78 lacs.
  • Resistance back at 6100CE, with huge OI of 64.2 lacs, and above that at 6200 with highest OI of 86.1 lacs.
  • Range as per Option Table is 5968 - 6056 and as per VIX is 5958 - 6046 with 6010 as the Pivot.
Option Call for 17-01-2013
Buy Nifty 6000CE above 80 for targets of 95, 119 SL - 76
Buy Nifty 6000PE above 52 for targets of 60, 69 SL - 46

India VIX : 13.99 up by 0.41 points
Call OI : 33177400
Put OI : 42688100
PCR OI : 1.287
SMR : 10.87 (Bearish to Neutral: As said yesterday to be cautious with long as SMR was below 10, my hunch came true. “BEARS ARE BACK” in the race, but the BULLS have still not given up...)