Wednesday, June 5, 2013

Option Open Interest for 05-06-2013

Inference
Nifty opened weak on the back of bad global cues and instantly dipped below the psychological level of 5900, but better sense prevailed and the responsive buyer took the market back above the previous day’s close to shut shop just above at 5923.85, a small gain of 4.40 points. Bulls got a positive close after 3 days of 205 points drubbing. The broader market though was weak, with 628 advances to 658 declines. Option Table support at 5900 level is getting better with each passing day.
  • Call option 5800-6300 added 17.12 lacs huge amount of OI with small profit booking seen at 6400 and above strike price.
  • Put option 5900-5500 added 19.49 lacs huge amount of OI with short covering seen at 6000 and above strike prices.
  • Highest accumulation on Call option 6200 at 58.90 lacs & 6100 at 54.80 lacs whereas Put option 5900 at 61.01 lacs & 5800 at 60.28 lacs.
  • Nifty Open Interest is at 1,31,53,200 down by 2,55,250, with small increase in price, most probably short covering.
  • Bank Nifty Open Interest is at 11,39,575, down by 38,150, with increase in price, most probably short covering.
  • FII’s sold huge 10.05 lacs of Futures (Approx 67 lacs futures sold in the last 4 days), most probably huge long liquidation, as their net OI decreased by 2288 contracts and the average price per contract comes to around 5968.
  • FII’s future open contract as on date is 256945.
  • PCR Open Interest (Volume) is still at 1.042.
  • Support getting stronger at 5900, with OI now above 61.01 lacs and below that at 5800 with OI of 60.28 lacs.
  • Initial resistance still at 6000, with OI of 42.45 lacs and above that at 6100 with OI of 54.80 lacs.
  • Range as per Option Table is 5858 - 5976 and as per VIX is 5867 - 5971 with 5940 as the Pivot.
Option Call for 06-06-2013
Buy Nifty 6000CE above 65 for targets of 73, 82 SL - 61
Buy Nifty 5900PE above 84 for targets of 94, 109 SL - 79

India VIX : 16.78 down by 0.48
Call OI : 34416750
Put OI : 35850250
PCR OI : 1.042
SMR : 16.11 (BEARISH: Bulls for a change thwarted the Bears and got a positive closing, but need follow-up action or else the Bears who are having upper hand can just come back and slaughter them...)