Sunday, July 7, 2013

Option Open Interest for 05-07-2013

Inference
Nifty opened up on the back of good global cues and went to touch the highs of the day within the first few minutes and then started drifting down with each passing hour. The index ultimately closed around the lows of the day at 5867.90, still a handsome gain of 30.95 points. On a week-on-week basis the index gained just 25.70 points or around 0.44%. The broader market was just positive, with 652 advances to 615 declines. OI for 5600PE has gone above 83 lacs for the first time and now is super base for the series.
  • Call option 6000-6300 added 13.61 lacs huge amount of OI with huge short covering seen at 5900 and below strike prices.
  • Put option 5900-5400 added 29.82 lacs huge amount of OI with profit booking seen at 5300 and below strike prices.
  • Highest accumulation on Call option 6000 at 69.15 lacs & 5900 at 49.95 lacs whereas Put option 5600 at 83.34 lacs & 5800 at 62.25 lacs.
  • Nifty Open Interest is at 1,56,46,500 up by 6,81,050, with increase in price, most probably huge long build-up.
  • Bank Nifty Open Interest is at 12,38,625, down by 47,775, with increase in price, most probably short covering.
  • FII’s bought 2.09 lacs Futures, mostly long build-up, as their net OI increased by 10424 contracts and the average price per contract comes to around 5859.44.
  • FII’s future open contract as on date is 368832.
  • PCR Open Interest (Volume) has gone to the high point of the series at 1.394.
  • Very good support now at 5800, with huge OI of 62.25 lacs and below that at 5700 with OI of 60.84 lacs.
  • Resistance still at 5900, but looking very weak with OI of just 49.95 lacs and above that at 6000 with huge OI of 69.15 lacs.
  • Range as per Option Table is 5811 - 5936 and as per VIX is 5811 - 5925 with 5876 as the Pivot.
Option Call for 08-07-2013
Buy Nifty 5900CE above 86 for targets of 95, 108 SL - 81
Buy Nifty 5800PE above 70 for targets of 78, 87 SL - 66

India VIX : 18.67, up 0.09 by points
Call OI : 31778500
Put OI : 44296750
PCR OI : 1.394
SMR : 13.39 (Bullish: Bears seems losing the game with huge liquidation at 5900-5700 CE level, need to buckle up or else the Bulls may just have enough time to tighten the noose and gallop towards 6000 in the next few days...)