Monday, May 5, 2014

Option Open Interest for 05-05-2014

Inference
Nifty opened negative but saw the buyers back with the index moving up towards the highs of the day around 6741. The seller used the opportunity to sell high and the index was back again towards the lows of the day and closed just up at 6699.35, miniscule gain of 4.55 points. The broader market though was negative, with 632 advances to 861 declines. Expected range till before Election result seems to be 6500-7000.
  • Call option 6700, 6900-7400 added 7.80 lacs huge amount of OI with small profit booking at 6800 strike price.
  • Put option 6800-6400 added 10.09 lacs huge amount of OI with profit booking seen at 6300 strike price.
  • Nifty Open Interest is at 1,31,52,400 up by 2,89,800, with small increase in price, most probably long build-up.
  • Bank Nifty Open Interest is at 15,84,300 up by 63,925, with increase in price, most probably long build-up.
  • FII’s bought 1.33 lacs Futures, mostly long build-up as their net OI increased by 8738 contracts (includes 47263 longs to 44595 shorts for the day) and the average price per contract comes to around 6696.88.
  • FII’s future open contract as on date is 266387.
  • PCR Open Interest (Volume) is constant around 1.130.
  • Initial support still at 6700, with OI of now just above 20.21 lacs and below that at 6500 with highest OI of 40.99 lacs.
  • Initial resistance at 6800, with OI of 31.71 lacs and above that at 7000 with huge OI of 40.79 lacs.
  • Day Range as per Option Table is 6656 - 6759 and as per VIX is 6579 - 6819 with 6707 as the Pivot.
Option Call for 06-05-2014
Buy Nifty 6800CE above 222 for targets of 236, 257 SL - 215
Buy Nifty 6700PE above 233 for targets of 252, 272 SL - 225

India VIX : 34.19 up by 1.13 points
Call OI : 28760350
Put OI : 32506350
PCR OI : 1.130
SMR : 30.25 (Bearish: Bears are with a small advantage but missing the momentum required to move the index down by much, Bulls holding on around 6700 waiting for the opportune moment to strike...)