Tuesday, May 13, 2014

Option Open Interest for 13-05-2014

Inference
Nifty opened up around 7080 level on the back of favourable Exit Poll Result and saw huge buying interest to move towards the highs of the day at 7172, but profit booking saw the index close lower at 7108.75, still a huge gain of 94.50 points. The broader market was positive, with 959 advances to 547 declines. Expected range till before Election result seems to be 6400-7500.
  • Call option 7100-7600 added 11.95 lacs huge amount of OI with short covering seen at 7000 and lower strike prices.
  • Put option 7500-6900 added 16.16 lacs huge amount of OI with profit booking seen at 6800 and lower strike prices.
  • Nifty Open Interest is at 1,60,08,750 up by 10,34,550, with increase in price, most probably huge long build-up.
  • Bank Nifty Open Interest is at 19,06,400 down by 30,375, with huge increase in price, most probably short covering.
  • FII’s bought huge 21.01 lacs Futures, mostly long build-up as their net OI increased by 58587 contracts (includes 137674 longs to 95651 shorts for the day) and the average price per contract comes to around 7135.87.
  • FII’s future open contract as on date is 357342.
  • PCR Open Interest (Volume) is still below 1 at 0.869.
  • Initial support stays at 7000, with OI of 24.91 lacs and below that at 6800 with OI of 31.60 lacs.
  • Initial resistance at 7200 with huge OI of 50.87 lacs and above that at 7500 with huge OI of 52.63 lacs.
  • Day Range as per Option Table is 7038 - 7185 and as per VIX is 6989 - 7228 with 7116 as the Pivot.
Option Call for 14-05-2014
Buy Nifty 7200CE above 189 for targets of 210, 250 SL - 182
Buy Nifty 7000PE above 164 for targets of 188, 235 SL - 157

India VIX : 32.05 down by 5.06 points
Call OI : 49221600
Put OI : 42782500
PCR OI : 0.869
SMR : 36.87 (Bullish with Caution: The index has gained 450 points in the last 3 days and looks good for more with the PE writers back in action, though higher side selling can be seen as good resistance developing around 7200 level...)