Tuesday, January 28, 2014

Option Open Interest for 28-01-2014

Inference
Nifty opened flat and stayed positive till the RBI Governor came out with the Credit Policy and increased Repo rate by 25 bps to 8%, which saw the index nosedive by 80 points within minutes to the lows of the day at 6085. Small pullback saw the index close at 6126.25, a small loss of 9.60 points. The broader market was just positive, with 709 advances to 673 declines. Best resistance for the series is now at 6300 Level.
  • Call option 6100-6300 added 23.18 lacs huge amount of OI with profit booking seen at 6400 and above strike prices.
  • Put option 6150-6000 added 12.10 lacs small amount of OI with huge short covering seen at 6200 and above strike prices.
  • Nifty Open Interest is at 1,08,01,550 down by 18,50,300, whereas Feb series added 37.02 lacs, with decrease in price, most probably 100% roll-over with huge short build-up in next series.
  • Bank Nifty Open Interest is at 15,80,925 down by 1,83,975, whereas Feb series added 0.97 lacs, with decrease in price, most probably rollover with huge long liquidation.
  • FII’s sold small 0.27 lacs Futures, mostly short build-up, as their net OI increased by 44572 contracts (includes 264639 longs and 265185 shorts for the day) and the average price per contract comes to around 6064.41.
  • FII’s future open contract as on date is 570118.
  • PCR Open Interest (Volume) is around the lowest of the series at 0.793.
  • Initial and best support still at 6100, with huge OI of 42.54 lacs and below that at 6000 with OI of 49.25 lacs.
  • Initial resistance at 6150, with huge addition for the day at 5.85 lacs and above that at 6200, with OI of 47.30 lacs.
  • Day Range as per Option Table is 6071 - 6180 and as per VIX is 6069 - 6183 with 6125 as the Pivot.
Option Call for 29-01-2014
Buy Nifty 6100CE above 62 for targets of 85, 112 SL - 54
Buy Nifty 6200PE above 82 for targets of 99, 125 SL - 77

India VIX : 17.72 down by 0.95 points
Call OI : 35092400
Put OI : 27815400
PCR OI : 0.793
SMR : 22.36 (Bearish: RBI Governor gave enough ammunition to the Bears to ambush the Bulls who tried to come back with a positive open in the morning, Shorters needs to be cautious as SMR above 20...)