Wednesday, June 4, 2014

Option Open Interest for 04-06-2014

Inference
The index opened flat and stayed in a narrow range of 42 points for the day, with the bias being negative. Nifty ultimately closed at 7402.25, a small loss of 13.60 points. The broader market though was positive, with 1129 advances to 436 declines. Expected range for the series as of now seems to be 7000-7500.
  • Call option 7400-7500, 7700-7800 added 5.76 lacs huge amount of OI with short covering seen at 7300 and lower strike prices.
  • Put option 7500-6900 added 9.45 lacs huge amount of OI with profit booking seen at 6700 and lower strike prices.
  • Nifty Open Interest is at 1,51,13,600 down by 7,38,900, with decrease in price, most probably huge long liquidation.
  • Bank Nifty Open Interest is at 24,09,275 down by 98,225, with increase in price, most probably huge short covering.
  • FII’s sold huge 8.68 lacs Futures, mostly short build-up as their net OI increased by 1716 contracts (includes 18009 longs to 35373 shorts for the day) and the average price per contract comes to around 7456.89.
  • FII’s future open contract as on date is 276161.
  • PCR Open Interest (Volume) has moved up to 0.903.
  • Initial support at 7300, with OI of 28.74 lacs and below that at 7200 with OI of 37.78 lacs.
  • Initial and best resistance at 7500 with highest OI of 58.66 lacs.
  • Day Range as per Option Table is 7325 - 7484 and as per VIX is 7342 - 7463 with 7409 as the Pivot.
Option Call for 05-06-2014
Buy Nifty 7400CE above 115 for targets of 122, 133 SL - 109
Buy Nifty 7400PE above 96 for targets of 104, 115 SL - 89

India VIX : 15.57 down by 0.23 points
Call OI : 35344750
Put OI : 31921400
PCR OI : 0.903
SMR : 17.24 (Bullish: A perfect consolidation after 2 days of huge up-move, with the writers trying to seal corresponding support and resistance, though selling can be seen at higher levels...)