Wednesday, April 9, 2014

Option Open Interest for 09-04-2014

Inference
Nifty opened up around 6722 and stayed in a narrow range for the better part of the day, but saw huge buying interest around the last 2 hours of trade to see the index above 6800 for the first time. The index though closed a little below at 6796.20, huge gain of 101.15 points. The broader market was also positive, with 1129 advances to 388 declines. Range for the time being at 6700-6900.
  • Call option 7100-7300 added 3.31 lacs huge amount of OI with short covering seen at 6800 and below strike prices.
  • Put option 6900-6600 added 28.55 lacs huge amount of OI with profit booking seen at 6500 and lower strike prices.
  • Nifty Open Interest is at 1,74,35,050 up by 7,21,950, with increase change in price, most probably huge long build-up.
  • Bank Nifty Open Interest is at 15,86,100 up by 1,39,625, with huge increase in price, most probably long build-up.
  • FII’s bought 1.83 lacs Futures, mostly long build-up, as their net OI increased by 9803 contracts (includes 50276 longs to 46609 shorts for the day) and the average price per contract comes to around 6807.31.
  • FII’s future open contract as on date is 374226.
  • PCR Open Interest (Volume) is at the highest point of the series at 1.515.
  • Initial and best support now up at 6700, with highest OI of 59.53 lacs and below that at 6600 with huge OI of 54.64 lacs.
  • Not much resistance in either strike moving forward.
  • Day Range as per Option Table is 6725 - 6829 and as per VIX is 6700 - 6892 with 6770 as the Pivot.
Option Call for 10-04-2014
Buy Nifty 6800CE above 82 for targets of 100, 120 SL - 70
Buy Nifty 6800PE above 61 for targets of 78, 105 SL - 56

India VIX : 26.91 up by 1.96 points
Call OI : 25715700
Put OI : 38968600
PCR OI : 1.515
SMR : 17.76 (Bullish: After a few days of intra correction, the index added 100 points and went on to scale 6800; the CE writers have been butchered with not a single strike having OI above 40 lacs...)