Sunday, May 18, 2014

Option Open Interest for 16-05-2014

Inference
The index opened up by 147 points on the back of better than expected results coming out in the morning and went up to touch the highs of the day within the first hour of trade to the highs of 7563. Profit booking from thereon took the index to the lows of the day at 7131 but closed up at 7203.00, huge gain of 79.85 points. On a week on week basis the index gained huge 344.20 points or approx 5.02%. The broader market was just positive, with 802 advances to 724 declines. Expected range till Expiry seems to be 6900-7500.
  • Call option 7400-7700 added 22.84 lacs huge amount of OI with short covering seen at 7200 and lower strike prices.
  • Put option 7700-6900 added 64.73 lacs huge amount of OI with profit booking seen at 6800 and lower strike prices.
  • Nifty Open Interest is at 2,15,56,750 up by 36,21,150, with increase in price, most probably huge long build-up.
  • Bank Nifty Open Interest is at 25,44,100 up by 4,03,075, with increase in price, most probably huge long build-up.
  • FII’s sold huge 11.29 lacs Futures, mostly short build-up as their net OI increased by 333 contracts (includes 207808 longs to 230389 shorts for the day) and the average price per contract comes to around 7275.21.
  • FII’s future open contract as on date is 391035.
  • PCR Open Interest (Volume) though moved to 0.735 due to huge profit booking at 6500-6400PE Level.
  • Initial support at 7200, with huge addition of 11.64 lacs for the day and below that at 7000 with huge OI of 49.69 lacs.
  • Initial resistance at 7300 with OI of 33.76 lacs and above that at 7500 with highest OI of 58.36 lacs.
  • Day Range as per Option Table is 7169 - 7377 and as per VIX is 7111 - 7295 with 7299 as the Pivot.
Option Call for 19-05-2014
Buy Nifty 7200CE above 218 for targets of 261, 345 SL - 209
Buy Nifty 7200PE above 119 for targets of 149, 216 SL - 109

India VIX : 24.29 down by 12.48 points
Call OI : 62865450
Put OI : 46226600
PCR OI : 0.735
SMR : 33.03 (Bullish with Caution: With election result out of the way, the index should act as per Option Interest, which looks good with the addition of more than 64 lacs from 7700-6900PE level, Buy on Dips looks good...)