Sunday, July 20, 2014

Option Open Interest for 18-07-2014

Inference
The index opened weak, and went on to touch the lows of the day 7595 on the back of Bad Global cues. The responsive buyer took control from thereon to push the index back in green making a high of 7685, but closed just lower at 7663.90, a gain of 23.45 points. On a week on week basis the index gained 204.30 points or approx 2.74%. The broader market though was weak, with 688 advances to 849 declines. Broader range for the series is at 7400-7800.
  • No Call option addition though short covering seen at 7700 and below strike prices.
  • Put option 7700-7500, 7300-7200 added 22.21 lacs huge amount of OI with profit booking seen at 7100 and below strike prices.
  • Nifty Open Interest is at 1,50,23,000 up by 2,07,900, with increase in price, most probably long/short build-up.
  • Bank Nifty Open Interest is at 22,20,150 up by 51,550, with increase in price, most probably huge long build-up.
  • FII’s sold huge 4.88 lacs Futures, which includes 6628 long liquidation and 3125 short addition, with decrease in net OI by 3503 contracts (includes 36992 longs to 46745 shorts for the day) and the average price per contract comes to around 7675.23.
  • FII’s Index future open contract as on date is 187592 Longs to 152979 Shorts.
  • PCR Open Interest (Volume) is at 0.973.
  • Initial support at 7600, with huge OI of 45.03 lacs and below that at 7500 with huge OI of 68.25 lacs.
  • Initial resistance at 7700, with huge OI of 53.45 lacs and above that at 7800 with OI of 48.71 lacs.
  • Day Range as per Option Table is 7578 - 7725 and as per VIX is 7603 - 7724 with 7648 as the Pivot.
Option Call for 21-07-2014
Buy Nifty 7600CE above 117 for targets of 140, 163 SL - 107
Buy Nifty 7700PE above 102 for targets of 124, 160 SL - 94

India VIX : 15.10 up by 0.13 points
Call OI : 42573050
Put OI : 41408150
PCR OI : 0.973
SMR : 15.52 (Bullish: The PE writers are coming back with PCR Volume just below 1 and for the first time the CE writers covering en-mass, Bulls can’t be complacent as resistance still good at 7700...)