Tuesday, March 19, 2013

Option Open Interest for 19-03-2013

Inference
Nifty opened positive just above the previous day’s close, but went for a tailspin on the back of news that the DMK has pulled out of the UPA government. In-between the RBI governor cut repo by 25 bps, and kept CRR unchanged, which was in-line with market expectation. The index closed near the low point of the day at 5745.95, a huge loss of 89.30 points. The broader market was also weak, with just 335 advances to 1174 declines. Bears are in full control of Option Table, with Bulls running for cover.
  • Call option 5700-6000 added 69.90 lacs of OI with profit booking seen at 6100 and above strike prices.
  • Put Option 5400 added 17.89 lacs huge amount of OI with huge short covering seen at 5700 and above strike prices.
  • Highest accumulation on Call option 6000 at 99.83 lacs & 5900 at 81.02 lacs whereas Put option 5700 at 85.26 lacs & 5800 at 66.78 lacs.
  • Nifty Open Interest is at 1,60,04,350 up by 7,38,500, with decrease in price, mostly probably huge short build-up.
  • Bank Nifty Open Interest is at 16,11,250, up by 2,05,100, with decrease in price, most probably huge short build-up.
  • FII’s sold 14.01 lacs of Futures, most probably short build-up, as their net OI increased by 13832 contracts and the average price per contract comes to around 5757.
  • FII’s future open contract as on date is 376320.
  • PCR Open Interest (Volume) dropped below 1 for the first time in the series on the back of huge liquidation seen at 6000-5500PE levels.
  • Supports are falling like nine pins, with just 5700 looking good, though covered huge 22.8 lacs for the day.
  • Initial resistance right now at 5800CE, with huge addition for the day at 24.6 lacs and above that at 5900 with OI above 81.02 lacs.
  • Range as per Option Table is 5720 - 5821 and as per VIX is 5696 - 5796 with 5780 as the Pivot.
Option Call for 20-03-2013
Buy Nifty 5800CE above 58 for targets of 71, 100 SL - 53
Buy Nifty 5700PE above 42 for targets of 60, 78 SL - 36

India VIX : 16.71 up by 0.86
Call OI : 45468550
Put OI : 45001150
PCR OI : 0.990
SMR : 16.88 (Bearish: So it was a Series decider day with the Bears in full fury, Bulls need to come back fast or will have to take hibernation for the time being...)