Monday, July 21, 2014

Option Open Interest for 21-07-2014

Inference
The index opened positive, and went on to touch the highs of the day at 7722, but saw selling pressure to move back below 7700 and close near the lows at 7684.20, still a gain of 20.30 points. The broader market was also positive, with 936 advances to 609 declines. Broader range for the series is at 7400-7800.
  • Call option 7800-8000 added 8.62 lacs huge amount of OI with short covering seen at 7600 and below strike prices.
  • Put option 7700-7400 added 13.90 lacs huge amount of OI with profit booking seen at 7300 and below strike prices.
  • Nifty Open Interest is at 1,50,09,500 down by 13,500, with increase in price, most probably short covering.
  • Bank Nifty Open Interest is at 21,57,625 down by 62,525, with small decrease in price, most probably huge long liquidation.
  • FII’s bought 3.83 lacs Futures, which includes 2874 long build-up and 4795 short covering, with decrease in net OI by 1921 contracts (includes 29333 longs to 21664 shorts for the day) and the average price per contract comes to around 7688.74.
  • FII’s Index future open contract as on date is 190466 Longs to 148184 Shorts.
  • PCR Open Interest (Volume) closed just below 1 at 0.986.
  • Initial support getting better at 7600, with huge OI of 54.90 lacs and below that at 7500 with huge OI of 68.35 lacs.
  • Initial resistance still at 7700, with huge OI of 51.72 lacs and above that at 7800 with OI of 51.33 lacs.
  • Day Range as per Option Table is 7618 - 7760 and as per VIX is 7624 - 7744 with 7693 as the Pivot.
Option Call for 22-07-2014
Buy Nifty 7600CE above 127 for targets of 139, 159 SL - 119
Buy Nifty 7700PE above 73 for targets of 82, 95 SL - 68

India VIX : 14.90 down by 0.20 points
Call OI : 42360450
Put OI : 41755000
PCR OI : 0.986
SMR : 15.12 (Bullish: The 7600PE writers adding huge for the day and now it may act as good support, resistance still at 7700 but getting weaker by the day, only drawback PCR Volume still below 1...)