Wednesday, April 16, 2014

Option Open Interest for 16-04-2014

Inference
Nifty opened flat and stayed in a narrow range till noon, but saw huge selling from thereon to see the index below 6700. Nifty ultimately closed near the lows at 6675.30, huge loss of 57.80 points. The broader market was very weak, with just 474 advances to 1023 declines. Range for the time being at 6600-6800.
  • Call option 6600-6900 added 20.77 lacs huge amount of OI with profit booking seen at 7000 and above strike prices.
  • Put option 6600-6500 added 1.73 lacs huge amount of OI with short covering seen at 6700 and above strike prices.
  • Nifty Open Interest is at 1,57,25,300 up by 3,70,150, with decrease in price, most probably huge short build-up.
  • Bank Nifty Open Interest is at 14,07,375 down by 14,100, with small decrease in price, most probably long liquidation.
  • FII’s bought huge 2.78 lacs Futures, mostly long build-up, as their net OI increased by 27771 contracts (includes 64920 longs to 59361 shorts for the day) and the average price per contract comes to around 6659.25.
  • FII’s future open contract as on date is 383768.
  • PCR Open Interest (Volume) has dipped down to 1.126.
  • Initial and best support now at 6600, with huge OI of 52.58 lacs and below that at 6500 with huge OI of 44.63 lacs.
  • Best resistance is at 6800 with OI of 52.96 lacs and above that at 6900 with OI of 43.88 lacs.
  • Day Range as per Option Table is 6637 - 6743 and as per VIX is 6566 - 6784 with 6696 as the Pivot.
Option Call for 17-04-2014
Buy Nifty 6700CE above 61 for targets of 80, 109 SL - 55
Buy Nifty 6700PE above 48 for targets of 60, 73 SL - 40

India VIX : 31.16 down by 0.72 points
Call OI : 30906350
Put OI : 34797650
PCR OI : 1.126
SMR : 27.68 (Bearish: Bears broke the psychological level of 6700 and now need a follow-up action and they could be in the driver’s seat for the rest of the series...)