Wednesday, May 14, 2014

Option Open Interest for 14-05-2014

Inference
Nifty opened flat and after the initial surge towards the highs of the day around 7142 but the sellers used the opportunity to sell the highs and the index went down to make low of 7080. Nifty ultimately closed the day flat at 7108.75. The broader market was positive, with 965 advances to 553 declines. Expected range till before Election result seems to be 6400-7500.
  • Call option 7100-7600 added 6.71 lacs huge amount of OI with short covering seen at 7000 and lower strike prices.
  • Put option 7100-6900 and 6700-6600 added 17.94 lacs huge amount of OI with profit booking seen at 6800 and 6400 strike prices.
  • Nifty Open Interest is at 1,70,21,850 up by 10,13,100, with no change, most probably huge long/short build-up.
  • Bank Nifty Open Interest is at 20,60,650 up by 1,54,250, with increase in price, most probably long build-up.
  • FII’s sold huge 1.44 lacs Futures, mostly short build-up as their net OI increased by 21088 contracts (includes 244759 longs to 53724 shorts for the day) and the average price per contract comes to around 7143.26.
  • FII’s future open contract as on date is 378430.
  • PCR Open Interest (Volume) is still below the danger level at 0.868.
  • Initial support still at 7000, with OI of 26.33 lacs and below that at 6900 with OI of 24.17 lacs.
  • Initial and very good resistance at 7200 with huge OI of 52.05 lacs and above that at 7500 with highest OI of 52.34 lacs.
  • Day Range as per Option Table is 7034 - 7181 and as per VIX is 6988 - 7229 with 7111 as the Pivot.
Option Call for 15-05-2014
Buy Nifty 7200CE above 189 for targets of 194, 207 SL - 181
Buy Nifty 7000PE above 165 for targets of 183, 202 SL - 158

India VIX : 32.42 up by 0.37 points
Call OI : 51521000
Put OI : 44703900
PCR OI : 0.868
SMR : 37.36 (Bullish with Caution: A pause day after 3 days of relentless upmove of more than 450 points, but the Bulls don’t seem too comfortable adding ATM puts, whereas resistance still good at 7200 level...)