Saturday, May 4, 2013

Option Open Interest for 03-05-2013

Inference
Nifty opened flat, but weakened to the lows of the day as the RBI cut just the benchmark repo rate by 25 bps, but kept cash reserve ratio unchanged. The index tried to move up and made a dash towards 6000 level but saw huge selling pressure and ended the day weak around the lows at 5944.00, a huge loss of 55.35 points. On a week on week basis the index gained 72.55 points or approx 1.24%. The broader market was also negative, with just 494 advances to 798 declines. Nifty lost 55 but Option Table is not looking weak at all, shorter need to be cautions at lower levels.
  • Call option 6000-6100 added 6.61 lacs huge amount of OI with profit booking seen at 6200 and above strike prices.
  • Put option 5800-5500 added 24.53 lacs huge amount of OI with short covering seen at 5900 and above strike prices.
  • Highest accumulation on Call option 6000 at 55.56 lacs & 6100 at 54.26 lacs whereas Put option 5700 at 72.76 lacs & 5800 at 71.91 lacs.
  • Nifty Open Interest is at 1,84,91,100 down by 2,28,300, with decrease in price, most probably huge long liquidation.
  • Bank Nifty Open Interest is at 17,23,950, up by 13,775, with decrease in price, most probably short build-up.
  • FII’s sold small 0.28 lacs of Futures, most probably short build-up, as their net OI increased by 6211 contracts and the average price per contract comes to around 5969.
  • FII’s future open contract as on date is 407704.
  • PCR Open Interest (Volume) has increased to 1.244.
  • Initial support still at 5900, though covered huge OI for the day and below that at 5800 with OI of 71.91 lacs.
  • Resistance getting better at 6000, with OI of 55.56 lacs and above that at 6100 with OI of 54.26 lacs.
  • Range as per Option Table is 5896 - 6011 and as per VIX is 5896 - 5992 with 5960 as the Pivot.
Option Call for 06-05-2013
Buy Nifty 6000CE above 76 for targets of 87, 100 SL - 71
Buy Nifty 5900PE above 72 for targets of 82, 94 SL - 67

India VIX : 15.55 down by 0.73
Call OI : 34177350
Put OI : 42513000
PCR OI : 1.244
SMR : 12.50 (Bullish: RBI today cut the benchmark repo rate by 25 basis points, but kept the cash reserve ratio unchanged which saw huge unwinding in the index, but technically no new shorts were added and OI table still looks good...)