Wednesday, March 26, 2014

Option Open Interest for 26-03-2014

Inference
Nifty opened strong above the psychological level of 6600 and went up to touch the highs of day at 6627. A small sell-off towards the second half saw the index below 6600 level but closed just above at 6601.40, small gain of 11.65 points. The broader market though was weak, with 674 advances to 801 declines. Best support for the series at 6400 and resistance at 6700.
  • Call option 6650-6700 added 7.52 lacs huge amount of OI with huge short covering seen at 6600 and lower strike prices.
  • Put option 6700-6650, 6550 added 15.01 lacs huge amount of OI with profit booking seen at 6500 and lower strike prices.
  • Nifty Open Interest is at 1,54,22,600 down by 32,95,050, whereas April Series also added 23.72 lacs with small increase in price, mostly rollover with huge long liquidation/short covering.
  • Bank Nifty Open Interest is at 12,62,175 down by 1,52,200, whereas April Series added 3.89 lacs with increase in price, most probably 100% rollover with huge long build-up.
  • FII’s bought huge 13.15 lacs Futures, mostly short covering, as their net OI decreased by 25614 contracts (includes 198028 longs to 171736 shorts for the day) and the average price per contract comes to around 6596.80.
  • FII’s future open contract as on date is 658508.
  • PCR Open Interest (Volume) is at the highest point at 1.650.
  • Initial support at 6550, with huge addition for the day at 3.23 lacs and below that at 6500 with huge OI of 52.31 lacs.
  • Initial resistance at 6650, with OI of 34.68 lacs and above that at 6700 with huge OI of 55.57 lacs.
  • Expiry Day Range as per Option Table is 6558 - 6645 and as per VIX is 6540 - 6663 with 6603 as the Pivot.
Option Call for 27-03-2014
Buy Nifty 6600CE above 33 for targets of 48, 68 SL - 27
Buy Nifty 6600PE above 19 for targets of 27, 38 SL - 14

India VIX : 17.77 up by 0.85 points
Call OI : 28750950
Put OI : 47450350
PCR OI : 1.650
SMR : 10.77 (Bullish: As per Option Table an Expiry around 6600 would be the best for the writers, but short covering rally can bring in higher levels around 6650...)