Sunday, April 7, 2013

Option Open Interest for 05-04-2013

Inference
Nifty opened flat and got sold off to the lows of the day around 5535. The buyer for the first time in many days came back at the lows to move the index around the previous day’s close, but were unable to hold on and saw the index close at 5553.25, a loss of 21.50 points. On a week-on-week basis the index lost 129.30 points or around 2.28%. The broader market was flat to negative, with 726 advances to 762 declines. Bears have taken over the option table and it will take one gigantic effort for the Bulls to come back.
  • Call option 5400-5900 added 42.96 lacs huge amount of OI with profit booking seen at 6100 and above strike prices.
  • Put option 5500-5400 added 6.50 lacs huge amount of OI with huge short covering seen at 5600 and above strike prices.
  • Highest accumulation on Call option 5700 at 80.55 lacs & 5800 at 78.07 lacs whereas Put option 5600 at 58.04 lacs & 5500 at 53.67 lacs.
  • Nifty Open Interest is at 1,66,49,650 up by 10,05,650, with decrease in price, most probably huge short build-up.
  • Bank Nifty Open Interest is at 12,26,425, down by 21,425, with decrease in price, most probably huge long liquidation.
  • FII’s sold HUGE 19.81 lacs of Futures, most probably short build-up, as their net OI increased by 22485 contracts and the average price per contract comes to around 5573.
  • FII’s future open contract as on date is 370180.
  • PCR Open Interest (Volume) has crashed to 0.768, due to huge addition at 5600-5700CE levels.
  • Support at 5500, but looks vulnerable on the back of onslaught by the Bears, below that at 5400.
  • Resistance right now at 5600 with huge addition for the day at 11.3 lacs and above that at 5700 with highest OI of 80.55 lacs.
  • Range as per Option Table is 5503 - 5609 and as per VIX is 5506 - 5600 with 5680 as the Pivot.
Option Call for 08-04-2013
Buy Nifty 5600CE above 66 for targets of 74, 85 SL - 62
Buy Nifty 5600PE above 92 for targets of 105, 119 SL - 88

India VIX :16.16 up by 0.31 points
Call OI : 42172350
Put OI : 32395950
PCR OI : 0.768
SMR : 21.04 (Bearish: Bears on Friday made it sure that the level of 5700 for the time being is out of bounds for the Bulls, with OI now above 80 lacs, but only hitch is SMR above 20, so new shorts need to be cautious....)