Sunday, May 11, 2014

Option Open Interest for 09-05-2014

Inference
Nifty opened flat around the previous day’s close, but saw huge buying interest from the morning itself to scale 6700 level within the first hour of trade. The buying continued till the end of the day to close near the top at 6858.80, a huge gain of 198.95 points. On a week on week basis the index gained 164 points or approx 2.45%. The broader market was positive, with 927 advances to 570 declines. Expected range till before Opinion Poll result seems to be 6400-7000.
  • Call option 6800-7400 added 58.02 lacs huge amount of OI with small profit booking seen at 7100 strike price.
  • Put option 7100-6300 added 29.73 lacs huge amount of OI with not much change in other strike prices.
  • Nifty Open Interest is at 1,45,41,250 up by 9,06,300, with huge increase in price, most probably huge long build-up.
  • Bank Nifty Open Interest is at 20,91,325 up by 3,02,400, with huge increase in price, most probably huge-huge long build-up.
  • FII’s bought huge 8.83 lacs Futures, mostly long build-up as their net OI increased by 34966 contracts (includes 100674 longs to 83012 shorts for the day) and the average price per contract comes to around 6893.17.
  • FII’s future open contract as on date is 301240.
  • PCR Open Interest (Volume) though has dipped below 1 and now at 0.919.
  • Initial support at 6800, with OI of 33.41 lacs and below that at 6500 with OI of 44.20 lacs.
  • Initial resistance at 6900 with OI of 38.18 lacs and above that at 7000 with highest OI of 53.65 lacs.
  • Day Range as per Option Table is 6748 - 6873 and as per VIX is 6723 - 6994 with 6794 as the Pivot.
Option Call for 12-05-2014
Buy Nifty 7000CE above 230 for targets of 265, 310 SL - 192
Buy Nifty 6800PE above 258 for targets of 288, 335 SL - 249

India VIX : 37.71 up by 3.41 points
Call OI : 42103400
Put OI : 38709650
PCR OI : 0.919
SMR : 41.02 (Bullish with Caution: Though the index moved up 200 points to give an all time high close, but the PE writers still not confident enough adding ATP puts, seems like playing long in Future and Selling OTM Calls...)