Tuesday, April 29, 2014

Option Open Interest for 29-04-2014

Inference
Nifty opened flat to positive but saw huge profit booking within the first few minutes of trade to the lows around 6720. A pullback towards the previous day close was again sold off and the index closed near the lows at 6715.25, huge loss of 46.00 points. The broader market was also weak, with 607 advances to 877 declines. Expected range till before Election result seems to be 6500-7000.
  • Call option 6800-7400 added 10.67 lacs huge amount of OI with not much change in other strike prices.
  • Put option 6800-6400 added 7.77 lacs huge amount of OI with small short covering seen at 6900 strike price.
  • Nifty Open Interest is at 1,29,07,650 down by 8,65,700, with decrease in price, most probably huge long liquidation.
  • Bank Nifty Open Interest is at 14,94,625 up by 57,000, with decrease in price, most probably short build-up.
  • FII’s sold huge 6.23 lacs Futures, mostly long liquidation as their net OI decreased by 30877 contracts (includes 55073 longs to 67524 shorts for the day) and the average price per contract comes to around 6723.78.
  • FII’s future open contract as on date is 249096.
  • PCR Open Interest (Volume) is at the lowest point of the series at 0.987.
  • Initial support at 6700, with OI of just 17.74 lacs and below that at 6500 with OI of 31.16 lacs.
  • Initial resistance at 6800 with OI of 27.75 lacs and above that at 7000 with highest OI of 35.93 lacs.
  • Day Range as per Option Table is 6682 - 6779 and as per VIX is 6606 - 6824 with 6735 as the Pivot.
Option Call for 30-04-2014
Buy Nifty 7000CE above 147 for targets of 158, 181 SL - 139
Buy Nifty 6800PE above 205 for targets of 225, 245 SL - 199

India VIX : 31.05 down by 0.34 points
Call OI : 24967600
Put OI : 24633550
PCR OI : 0.987
SMR : 31.47 (Bearish: Three days of continuous down move, the longest after the breakout from 6350 level, the Bulls should come back tomorrow or else it will be Bears all the way...)