Thursday, September 26, 2013

Option Open Interest for 26-09-2013

Inference
Nifty opened flat and stayed in a very narrow range of 30 points for the better part of the day with a small up-move in the latter half being sold. The index ultimately closed just above the previous day at 5882.25, a small gain of 8.40 points. The broader market was positive, with 685 advances to 588 declines. The range developing for the new series comes around 5700-6100.
  • Call option 5400-6500 added 42.99 lacs huge amount of OI.
  • Put option 6500-5400 added 39.80 lacs huge amount of OI.
  • Nifty Open Interest is at 1,80,91,100 up by 44,08,050, with not much change in price, most probably long/short build-up.
  • Bank Nifty Open Interest is at 14,42,800 up by 2,03,800, with small increase in price, most probably huge long/short build-up.
  • FII’s bought huge 25.18 lacs Futures, mostly short covering, as their net OI decreased by 228621 contracts (includes 232304 longs and 181954 shorts) and the average price per contract comes to around 5844.57.
  • FII’s future open contract as on date is 446548.
  • PCR Open Interest (Volume) at start of series is at 1.244.
  • Initial support developing at 5800, with OI of 31.51 lacs, below that at 5700, with highest OI of 35.34 lacs.
  • Initial and best resistance at 6000, with OI of 28.86 lacs, above that at 6100 with OI of just 24.46 lacs.
  • Day Range as per Option Table is 5799 - 5975 and as per VIX is 5808 - 5956 with 5888 as the Pivot.
Option Call for 27-09-2013
Buy Nifty 6000CE above 138 for targets of 151, 165 SL - 131
Buy Nifty 5800PE above 113 for targets of 126, 142 SL - 108

India VIX : 24.00, down by 1.68 points
Call OI : 22477450
Put OI : 27955950
PCR OI : 1.244
SMR : 19.30 (Bearish to Neutral: A very timid expiry compared to the huge volatile days seen in this month, looks like support is developing around 5800 level, but Bulls need to break free or else this support may not hold for long...)