Wednesday, January 1, 2014

Option Open Interest for 01-01-2014

Inference
Nifty opened positive but started dipping down with passing hour of trade to touch the lows around 6298, but closed just above at 6301.65, a miniscule loss of 2.35 points. The broader market though was very good, with 957 advances to 413 declines. Range for the week stays around 6250-6400.
  • Call option 6300-6900 added 9.88 lacs huge amount of OI with not much change in other strike prices.
  • Put option 6300-6000 added 5.48 lacs huge amount of OI with small profit booking seen at lower strike prices.
  • Nifty Open Interest is at 1,98,06,250 up by 67,950, with no change in price, most probably long/short build-up.
  • Bank Nifty Open Interest is at 14,90,075 up by 65,225, with small increase in price, most probably huge long build-up.
  • FII’s sold small 0.19 lacs Futures, mostly short build-up, as their net OI increased by 3004 contracts (includes 2500 longs and 2884 shorts for the day) and the average price per contract comes to around 6312.78.
  • FII’s future open contract as on date is 440021.
  • PCR Open Interest (Volume) is at 0.904.
  • Initial and best support still at 6300, with huge OI of 40.79 lacs and below that at 6200 with huge OI of 37.28 lacs.
  • Initial resistance at 6400, with huge OI of 37.27 lacs and above that at 6500, with highest OI of 46.29 lacs.
  • Day Range as per Option Table is 6258 - 6349 and as per VIX is 6250 - 6353 with 6309 as the Pivot.
Option Call for 02-01-2014
Buy Nifty 6400CE above 82 for targets of 87, 96 SL - 78
Buy Nifty 6300PE above 80 for targets of 86, 95 SL - 75

India VIX : 15.58 up by 0.46 points
Call OI : 27363400
Put OI : 24727900
PCR OI : 0.904
SMR : 17.24 (Bullish with Caution: Nifty on the 1st day of the New Year had the lowest volume in months, but was able to save the psychological level of 6300; the index can see movement only when the participants return from year-end holidays...)