Wednesday, July 9, 2014

Option Open Interest for 09-07-2014

Inference
The index opened positive but saw selling pressure within the first few minutes and went on to touch the lows of the day around 7551. Buying at lower level saw the index back in the green but bouts of selling saw the index close in red at 7585.00, a loss of 38.20 points. The broader market was also very weak, with 337 advances to 1217 declines. Broader range for July series comes at 7500-8000.
  • Call option 7500-8200 added 28.53 lacs huge amount of OI with small short covering seen at 7300 and below strike prices.
  • Put option 7600, 7400-7000 added 22.29 lacs huge amount of OI with short covering seen at 7700 and above strike prices.
  • Nifty Open Interest is at 1,36,16,000 down by 99,950, with decrease in price, most probably huge long liquidation.
  • Bank Nifty Open Interest is at 22,83,750 down by 17,975, with decrease in price, most probably long liquidation.
  • FII’s sold huge 8.73 lacs Futures, which includes 11587 long liquidation and 5865 short addition, with net OI decreased by 5722 contracts (includes 56472 longs to 73924 shorts for the day) and the average price per contract comes to around 7579.01.
  • FII’s Index future open contract as on date is 172086 Longs to 134720 Shorts.
  • PCR Open Interest (Volume) is at the lowest of the series at 0.821.
  • Initial and best support at 7500, with huge OI of 47.46 lacs.
  • Initial resistance now at 7700, with OI of 35.18 lacs and best at 8000 with highest OI of 87.77 lacs.
  • Day Range as per Option Table is 7522 - 7662 and as per VIX is 7513 - 7657 with 76 as the Pivot.
Option Call for 10-07-2014
Buy Nifty 7700CE above 101 for targets of 118, 146 SL - 95
Buy Nifty 7500PE above 96 for targets of 115, 136 SL - 89

India VIX : 18.19 down by 0.99 points
Call OI : 42355450
Put OI : 34788600
PCR OI : 0.821
SMR : 22.15 (Bearish with Caution: Nifty closed below the psychological level of 7600 for the first time this month and looks weak with only meaningful support around 7500 for the time being, resistance getting stronger at 7800...)