Thursday, May 8, 2014

Option Open Interest for 08-05-2014

Inference
Nifty opened flat to positive and tried to move above 6700 but was sold off to the lows of the day around 6640. A small pullback towards the end saw the index close in the green at 6659.85, small gain of 7.30 points. The broader market though was negative, with 652 advances to 815 declines. Expected range till before Election result seems to be 6400-7000.
  • Call option 6700, 7000-7400 added 15.38 lacs huge amount of OI with small profit booking seen at 6800-6900 strike prices.
  • Put option 6700-6300 added 3.38 lacs huge amount of OI with short covering seen at 6800 and above strike prices.
  • Nifty Open Interest is at 1,36,34,950 down by 2,14,800, with no change in price, most probably huge long liquidation.
  • Bank Nifty Open Interest is at 17,88,925 up by 88,725, with increase in price, most probably long build-up.
  • FII’s sold huge 4.49 lacs Futures, mostly long liquidation as their net OI decreased by 13435 contracts (includes 29475 longs to 38462 shorts for the day) and the average price per contract comes to around 6661.22.
  • FII’s future open contract as on date is 266274.
  • PCR Open Interest (Volume) is now just above 1 at 1.023.
  • Initial support at 6600, with OI of just 22.29 lacs and below that at 6500 with OI of 40.25 lacs.
  • Initial resistance at 6800 with OI of 28.72 lacs and above that at 7000 with highest OI of 49.59 lacs.
  • Day Range as per Option Table is 6615 - 6713 and as per VIX is 6540 - 6779 with 6662 as the Pivot.
Option Call for 09-05-2014
Buy Nifty 7000CE above 115 for targets of 122, 130 SL - 109
Buy Nifty 6500PE above 166 for targets of 177, 189 SL - 159

India VIX : 34.30 up by 0.69 points
Call OI : 34100850
Put OI : 34882100
PCR OI : 1.023
SMR : 33.53 (Bearish: The CE writers today also added huge quantity from 7000-7400, seems like participants are looking a max move around 7000 with lower level support at 6400...)

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