Thursday, July 10, 2014

Option Open Interest for 10-07-2014

Inference
The index opened flat and stayed in a narrow range till the start of the Union Budget, but saw huge volatility with lows at 7479 and highs placed at 7731.05, but ultimately closed weak at 7567.75, a loss of 17.25 points. The broader market though was positive, with 952 advances to 564 declines. Broader range for the series is still at 7500-8000.
  • Call option 7400-8000 added 37.96 lacs huge amount of OI with profit booking seen at 8100 and above strike prices.
  • Put option 7700, 7500-7400 added 12.30 lacs huge amount of OI with short covering seen at 7600 strike price.
  • Nifty Open Interest is at 1,36,29,200 up by 13,200, with decrease in price, most probably small short build-up.
  • Bank Nifty Open Interest is at 22,03,525 down by 80,225, with decrease in price, most probably long liquidation.
  • FII’s sold 3.42 lacs Futures, which includes 782 long liquidation and 6048 short addition, with net OI decreased by 6830 contracts (includes 95087 longs to 101917 shorts for the day) and the average price per contract comes to around 7549.03.
  • FII’s Index future open contract as on date is 171304 Longs to 140768 Shorts.
  • PCR Open Interest (Volume) is very weak at 0.773.
  • Initial and best support still at 7500, with huge OI of 49.96 lacs.
  • Initial resistance now at 7600, with OI of 30.25 lacs and best at 8000 with highest OI of 99.13 lacs.
  • Day Range as per Option Table is 7502 - 7672 and as per VIX is 7504 - 7631 with 7593 as the Pivot.
Option Call for 11-07-2014
Buy Nifty 7700CE above 81 for targets of 115, 160 SL - 75
Buy Nifty 7500PE above 82 for targets of 125, 176 SL - 75

India VIX : 15.97 down by 2.22 points
Call OI : 44426400
Put OI : 34325100
PCR OI : 0.773
SMR : 20.67 (Bearish: The Union Budget saw the index gyrate in a huge range of 252 points only to close weak with the CE writers in control as PCR-OI is at 0.773...)

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