Wednesday, March 19, 2014

Option Open Interest for 19-03-2014

Inference
Nifty opened just above the previous day’s close but saw small sell-off to the lows of the day at 6506. The buyers came back to move the index in the green, and closed at 6524.05, a small gain of 7.40 points. The broader market was just positive, with 739 advances to 718 declines. Best support for the series at 6400 and resistance at 6600.
  • Call option 6500-6700 added 5.62 lacs huge amount of OI with profit booking seen at 6800 and above strike prices.
  • Put option 6600-6400 added 11.40 lacs huge amount of OI with profit booking seen at 6300 and lower strike prices.
  • Nifty Open Interest is at 1,99,53,650 up by 2,93,550, with small increase in price, most probably long build-up.
  • Bank Nifty Open Interest is at 18,86,250 up by 17,475, with increase in price, most probably small long build-up.
  • FII’s bought 1.35 lacs Futures, mostly long build-up, as their net OI increased by 24307 contracts (includes 51974 longs to 49265 shorts for the day) and the average price per contract comes to around 6509.10.
  • FII’s future open contract as on date is 518930.
  • PCR Open Interest (Volume) is at 1.383.
  • Initial support got better at 6500, with huge OI of 61.71 lacs and below that at 6400 with highest OI of 62.70 lacs.
  • Initial and best Resistance still at 6600, with OI of 52.30 lacs.
  • Day Range as per Option Table is 6472 - 6575 and as per VIX is 6466 - 6582 with 6524 as the Pivot.
Option Call for 20-03-2014
Buy Nifty 6500CE above 83 for targets of 96, 111 SL - 79
Buy Nifty 6600PE above 77 for targets of 90, 104 SL - 73

India VIX : 16.88 down by 0.25 points
Call OI : 34731950
Put OI : 48022700
PCR OI : 1.383
SMR : 12.21 (Bullish: Another day of consolidation which saw the 6500PE writers making sure that the level is base for the next round of up-move, though 6600CE writers are holding on, tomorrow could be the decider...)