Monday, June 2, 2014

Option Open Interest for 02-06-2014

Inference
The index opened positive and went on to scale one level after another, eking out more than 132 points for the day to close near the day’s high at 7362.50. The broader market was also strong, with 1127 advances to 446 declines. Expected range for the series as of now seems to be 7000-7500.
  • Call option 7400-7800 added 17.61 lacs huge amount of OI with small short covering seen at 7300 and lower strike prices.
  • Put option 7400-6600 added 40.66 lacs huge amount of OI with small short covering seen at 7500 and higher strike prices.
  • Nifty Open Interest is at 1,65,06,700 down by 1,89,300, with increase in price, most probably short covering.
  • Bank Nifty Open Interest is at 26,00,525 down by 1,21,650, with increase in price, most probably huge short covering.
  • FII’s bought 4.33 lacs Futures, mostly short covering as their net OI decreased by 5006 contracts (includes 49657 longs to 40997 shorts for the day) and the average price per contract comes to around 7419.29.
  • FII’s future open contract as on date is 286723.
  • PCR Open Interest (Volume) has reversed from the lows to 0.901.
  • Initial support up at 7300, with huge addition of 13.16 lacs for the day and below that at 7200 with OI of 29.98 lacs.
  • Initial and good resistance at 7400 with OI of 42.80 lacs and above that at 7500 with highest OI of 47.94 lacs.
  • Day Range as per Option Table is 7250 - 7418 and as per VIX is 7299 - 7426 with 7324 as the Pivot.
Option Call for 03-06-2014
Buy Nifty 7300CE above 155 for targets of 181, 208 SL - 132
Buy Nifty 7300PE above 111 for targets of 134, 165 SL - 106

India VIX : 16.50 up by 0.16 points
Call OI : 32265100
Put OI : 29063100
PCR OI : 0.901
SMR : 18.32 (Bullish: The Bulls after being in doldrums for the last 5 days came back strong to close near all time high, with 7300PE writers overtaking the CE writers by a small margin...)