Tuesday, May 27, 2014

Option Open Interest for 27-05-2014

Inference
The index opened flat but saw selling pressure with the index making lows of the day around 7275. Intermittent buying saw the index close above the psychological level of 7300 at 7318.00, still a huge loss of 41.05 points. The broader market was also negative, with 593 advances to 977 declines. Expected range till Expiry seems to be 7000-7500.
  • Call option 7300-7500 added 19.61 lacs huge amount of OI with profit booking seen at 7600 and above strike prices.
  • Put option 7300-7200 added 11.14 lacs huge amount of OI with short covering seen at 7400 and above strike prices.
  • Nifty Open Interest is at 1,66,35,650 down by 25,11,250, whereas June series added 20.40 lacs with decrease in price, mostly rollover with some long liquidation.
  • Bank Nifty Open Interest is at 27,34,225 up by 45,200, whereas June series added 6.96 lacs with decrease in price, mostly short build-up in both series.
  • FII’s bought just 0.09 lacs Futures, mostly long build-up as their net OI increased by 4133 contracts (includes 145352 longs to 145165 shorts for the day) and the average price per contract comes to around 7361.83.
  • FII’s future open contract as on date is 531495.
  • PCR Open Interest (Volume) is at 0.875.
  • Initial support at 7200, with OI of 31.69 and below that at 7000 with OI of 47.53 lacs.
  • Initial and good resistance at 7400 with OI of 56.15 lacs and above that at 7500 with highest OI of 67.69 lacs.
  • Nifty Spot Day Range as per Option Table is 7226 - 7412 and as per VIX is 7245 - 7391 with 7322 as the Pivot.
Option Call for 28-05-2014
Buy Nifty 7300CE above 61 for targets of 82, 114 SL - 55
Buy Nifty 7400PE above 101 for targets of 128, 160 SL - 94

India VIX : 19.10 down by 0.74 points
Call OI : 52634850
Put OI : 46038900
PCR OI : 0.875
SMR : 21.84 (Neutral: The CE writers for the second day in a row made sure that upside for the series is being capped at 7500 with chances of Expiry below 7300 becoming more of a reality...)