Wednesday, September 11, 2013

Option Open Interest for 11-08-2013

Inference
Nifty for a change opened weak just below the previous day’s close but dipped fast to the lows around 5850. The index saw some volatile moves mostly with negative bias but saw the responsive buyer back in action during the last hour of trade to close in the green at 5913.15, a small gain of 16.40 points. The broader market was positive, with 861 advances to 478 declines. Based on Option Table, good support is developing around lower level with not much resistance excluding 6000 strike.
  • Call option 5900-6400 added 23.28 lacs huge amount of OI with huge short covering seen at 5800 and below strike price.
  • Put option 6000-5600 added 29.26 lacs huge amount of OI with profit booking seen at 5500 and below strike prices.
  • Nifty Open Interest is at 1,91,05,750 down by 10,23,200, with small increase in price, most probably huge long liquidation/short covering.
  • Bank Nifty Open Interest is at 20,43,750 down by 13,725, with increase in price, most probably short covering.
  • FII’s sold huge 4.73 lacs Futures, mostly short build-up, as their net OI increased by 21796 (includes 93119 longs and 102581 shorts) contracts and the average price per contract comes to around 5804.15.
  • FII’s future open contract as on date is 458573.
  • PCR Open Interest (Volume) has dipped a bit due to huge profit booking at 5500-5400PE level and now at 1.577.
  • Initial support getting better at 5800, with huge addition of 9.29 lacs for the day and OI now above 37 lacs, below that at 5700, with OI of 35.63 lacs.
  • Initial and best resistance at 6000, with OI of 42.91 lacs and above that at 6100 with OI of 30.99 lacs.
  • Day Range as per Option Table is 5786 - 6005 and as per VIX is 5821 - 6005 with 5890 as the Pivot.
Option Call for 12-08-2013
Buy Nifty 6000CE above 108 for targets of 123, 139 SL - 98
Buy Nifty 5800PE above 99 for targets of 115, 142 SL - 94

India VIX : 29.75 up by 0.31 points
Call OI : 36528250
Put OI : 57609950
PCR OI : 1.577
SMR : 18.86 (Bullish: Nifty saw a perfect consolidation day, with the Bulls taking a breather but closing above the psychological level of 5900 after many days, need to be cautious at higher levels as the index has run-up too much too fast...)