Tuesday, June 3, 2014

Option Open Interest for 03-06-2014

Inference
The index opened positive and stayed in a narrow range till the RBI Credit policy was announced. The index dipped to the lows of the day around 7342, but saw the responsive buyer back, with the index closing near the highs at 7415.85, a cool gain of 53.35 points. The broader market was also positive, with 981 advances to 572 declines. Expected range for the series as of now seems to be 7000-7500.
  • Call option 7500-7800 added 25.24 lacs huge amount of OI with short covering seen at 7300 and lower strike prices.
  • Put option 7400, 7200-6900 added 23.63 lacs huge amount of OI with profit booking seen at 6800 and lower strike prices.
  • Nifty Open Interest is at 1,58,52,500 down by 6,54,200, with increase in price, most probably short covering.
  • Bank Nifty Open Interest is at 25,07,500 down by 93,025, with decrease in price, most probably huge long liquidation.
  • FII’s sold 1.79 lacs Futures, mostly long liquidation as their net OI decreased by 12278 contracts (includes 52361 longs to 55935 shorts for the day) and the average price per contract comes to around 7453.63.
  • FII’s future open contract as on date is 274445.
  • PCR Open Interest (Volume) is still below 1 at 0.888.
  • Initial support at 7300, with OI of 28.14 lacs and below that at 7200 with OI of 36.33 lacs.
  • Initial and best resistance at 7500 with highest OI of 56.68 lacs.
  • Day Range as per Option Table is 7317 - 7481 and as per VIX is 7355 - 7477 with 7394 as the Pivot.
Option Call for 04-06-2014
Buy Nifty 7400CE above 117 for targets of 135, 153 SL - 105
Buy Nifty 7400PE above 109 for targets of 125, 150 SL - 103

India VIX : 15.80 down by 0.70 points
Call OI : 34853550
Put OI : 30941450
PCR OI : 0.888
SMR : 17.80 (Bullish: RBI Credit policy saw no rate cuts, but a dovish tone and 50 bps SLR cut saw the Index close above 7400 for the first time, but the OI is still not in sync so need to be cautious at higher levels...)