Thursday, June 5, 2014

Option Open Interest for 05-06-2014

Inference
The index opened flat and after making a initial low around 7360, saw the responsive buyers back in action to move the index just short of the magical value of 7500 and closed just below at 7474.10, a huge gain of 71.85 points. The broader market was also strong, with 1128 advances to 444 declines. Expected range for the series still stays at 7000-7500.
  • Call option 7600-7900 added 10.53 lacs huge amount of OI with short covering seen at 7400 and lower strike prices.
  • Put option 7600-7200 added 20.79 lacs huge amount of OI with profit booking seen at 7100 and lower strike prices.
  • Nifty Open Interest is at 1,40,40,100 down by 10,73,500, with increase in price, most probably huge short covering.
  • Bank Nifty Open Interest is at 24,02,625 down by 6,650, with decrease in price, most probably small long liquidation.
  • FII’s sold huge 11.93 lacs Futures, mostly long liquidation as their net OI decreased by 17766 contracts (includes 34239 longs to 58095 shorts for the day) and the average price per contract comes to around 7516.75.
  • FII’s future open contract as on date is 258395.
  • PCR Open Interest (Volume) is moving up and now at 0.947.
  • Initial support at 7400, with huge addition for the day at 6.44 lacs and below that at 7300 with OI of 35.21 lacs.
  • Initial and best resistance still at 7500 with highest OI of 57.89 lacs.
  • Day Range as per Option Table is 7367 - 7529 and as per VIX is 7414 - 7535 with 7440 as the Pivot.
Option Call for 06-06-2014
Buy Nifty 7400CE above 152 for targets of 178, 205 SL - 132
Buy Nifty 7500PE above 127 for targets of 151, 185 SL - 119

India VIX : 15.45 down by 0.12 points
Call OI : 35771100
Put OI : 33888650
PCR OI : 0.947
SMR : 16.31 (Bullish: After a day of consolidation, the Bulls came back to move the index up by a percentage point and made sure that the base get cemented at lower levels, 7500CE writers still holding on...)