Thursday, March 7, 2013

Option Open Interest for 07-03-2013

Inference
Nifty opened negative, just below the previous day’s close and stayed in a narrow range with negative bias throughout the morning session. The index took off in the afternoon session on the back of sustained buying aided with huge short covering to see 5900 on the future, but closed just below in Spot at 5863.30, still a handsome gain of 44.70 points. The broader market was positive, with 809 advances to 670 declines. The OI table now have Bulls written all over it, with 5800 level now in full control.
  • Call option 6000-6100 added 7.95 lacs huge amount of OI with liquidation seen at 5900 and below strike prices.
  • Put Option 6000-5500 added 26.25 lacs huge amount of OI with profit booking seen at 5400 and lower strike prices.
  • Highest accumulation on Call option 6000 at 67.02 lacs & 6100 at 57.06 lacs whereas Put option 5700 at 94.98 lacs & 5800 at 81.34 lacs.
  • Nifty Open Interest is at 1,69,94,800 up by 2,40,350, with increase in price, mostly probably huge long build-up.
  • Bank Nifty Open Interest is at 14,46,425, up by 33,350, with increase in price, most probably long build-up.
  • FII’s bought huge 6.92 lacs of Futures, most probably short covering, as their net OI decreased by 8960 contracts and the average price per contract comes to around 5906.
  • FII’s future open contract as on date is 330783.
  • PCR Open Interest (Volume) has bounced back now to 1.233.
  • Support now at 5800PE, with huge OI of 81.3 lacs and below that at 5700 with highest OI in Option table at 95 lacs.
  • Resistance still very much at 5900CE, but getting weaker by the day, and above that at 6000 with OI of 67 lacs.
  • Range as per Option Table is 5805 - 5898 and as per VIX is 5823 - 5903 with 5850 as the Pivot.
Option Call for 08-03-2013
Buy Nifty 5900CE above 59 for targets of 72, 86 SL - 52
Buy Nifty 5900PE above 85 for targets of 96, 114 SL - 81

India VIX : 13.07 down by 0.33
Call OI : 35959800
Put OI : 44351450
PCR OI : 1.233
SMR : 10.60 (Bullish: Bulls are just stream rolling over the Bears with huge addition at 5900-5800 level. Bears have no other option but to accept defeat, they have to come back or else be ready to see higher levels for this expiry...)