Sunday, May 19, 2013

Option Open Interest for 17-05-2013

Inference
Nifty opened positive but sold off within the first few minutes, but saw consolidation within a range of 20 points for the better part of the day. A huge breakout near the end of day saw the index moving up and touching the highs at 6199.95 but closed just below at 6187.30, still a gain of 17.40 points. On a week on week basis the index gained 80.05 points of around 1.31%, a fifth straight week of gain. The broader market though was weak, with just 584 advances to 688 declines. Bulls have added huge at 6200PE and may try to move the index above 6200 for the coming week, but the 6200CE writers are still holding on.
  • Call option 6200-6300 added 7.69 lacs huge amount of OI with huge short covering seen at 6100 and below strike prices.
  • Put option 6300-6000 added 22.54 lacs huge amount of OI with profit booking seen at 5900 and lower strike prices.
  • Highest accumulation on Call option 6200 at 75.32 lacs & 6100 at 56.13 lacs whereas Put option 6000 at 83.65 lacs & 5900 at 75.08 lacs.
  • Nifty Open Interest is at 2,56,43,650 up by 36,950, with increase in price, most probably long build-up.
  • Bank Nifty Open Interest is at 19,95,200, down by 76,875, with increase in price, most probably short covering.
  • FII’s sold 4.96 lacs of Futures, most probably long liquidation, as their net OI decreased by 5746 contracts and the average price per contract comes to around 6225.
  • FII’s future open contract as on date is 552637.
  • PCR Open Interest (Volume) is comfortably placed at 1.439.
  • Initial Support at 6100, with OI of 57.88 lacs and below that at 6000 with highest OI of 83.65 lacs.
  • Initial and best resistance still at 6200, though price is hovering around the level and above that at 6300 with OI of 55.72 lacs.
  • Range as per Option Table is 6123 - 6238 and as per VIX is 6130 - 6244 with 6170 as the Pivot.
Option Call for 20-05-2013
Buy Nifty 6200CE above 71 for targets of 81, 92 SL - 66
Buy Nifty 6200PE above 77 for targets of 89, 102 SL - 73

India VIX :17.57 down by 0.17 points
Call OI : 39282200
Put OI : 56533050
PCR OI : 1.439
SMR : 12.21 (Bullish: Nifty closed at the highest level in more than 2 years and still not showing any signs of weakness. A move above 6200 is on the cards, but staying cautious at higher levels is better...)