Monday, May 12, 2014

Option Open Interest for 12-05-2014

Inference
Nifty opened flat but saw the repeat of last Friday, with the index moving up with each hour breaking one milestone after another to close near the highs of day at 7014.25, a huge gain of 155.45 points, this being the first close above the coveted level of 7000 in the history of the index. The broader market though was just positive, with 765 advances to 748 declines. Expected range till before Opinion Poll result seems to be 6500-7200.
  • Call option 7000-7500 added 24.11 lacs huge amount of OI with short covering seen at 6900 and lower strike prices.
  • Put option 7200-6300 added 44.04 lacs huge amount of OI with not much change in other strike prices.
  • Nifty Open Interest is at 1,49,74,200 up by 4,32,950, with huge increase in price, most probably huge long build-up.
  • Bank Nifty Open Interest is at 19,36,775 down by 1,54,550, with huge increase in price, most probably huge short covering.
  • FII’s sold huge 3.63 lacs Futures, mostly long liquidation as their net OI decreased by 2485 contracts (includes 82485 longs to 89750 shorts for the day) and the average price per contract comes to around 7050.44.
  • FII’s future open contract as on date is 298755.
  • PCR Open Interest (Volume) is at the lowest point at 0.898.
  • Initial support at 7000, with huge addition for the day at 12.32 lacs and below that at 6800 with OI of 40.20 lacs.
  • Initial resistance at 7100 with OI of 22.06 lacs and above that at 7200 with huge OI of 49.04 lacs.
  • Day Range as per Option Table is 6917 - 7111 and as per VIX is 6878 - 7150 with 6966 as the Pivot.
Option Call for 13-05-2014
Buy Nifty 7000CE above 290 for targets of 310, 335 SL - 275
Buy Nifty 7000PE above 271 for targets of 298, 345 SL - 259

India VIX : 37.11 down by 0.60 points
Call OI : 48788150
Put OI : 43824200
PCR OI : 0.898
SMR : 41.31 (Bullish: Second day in a row the index saw huge upmove with a close above 7000 for the first time, and based on the addition at 7000PE, some more upside is possible but need to be cautious at higher levels...)

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