Tuesday, July 22, 2014

Option Open Interest for 22-07-2014

Inference
The index opened positive, and after staying within a small range for the first hour saw huge buying interest to move above 7750. A small sell-off saw the index back around 7720, but the Bulls used this opportunity to buy big and closed the index just a few points below all-time high level at 7767.85, a huge gain of 83.65 points. The broader market though was negative, with 752 advances to 808 declines. Broader range for the series is at 7500-7900.
  • Call option 7900-8000 added 10.50 lacs huge amount of OI with short covering seen at 7700 and below strike prices.
  • Put option 7900-7600 added 47.63 lacs huge amount of OI with profit booking seen at 7500 and below strike prices.
  • Nifty Open Interest is at 1,63,98,650 up by 13,89,150, with increase in price, most probably huge long build-up.
  • Bank Nifty Open Interest is at 20,79,225 down by 78,400, with increase in price, most probably huge short covering.
  • FII’s bought huge 15.53 lacs Futures, which includes 29496 long build-up and 1560 short covering, with increase in net OI by 27936 contracts (includes 65614 longs to 34558 shorts for the day) and the average price per contract comes to around 7760.78.
  • FII’s Index future open contract as on date is 219962 Longs to 146624 Shorts.
  • PCR Open Interest (Volume) closed above 1 at 1.089.
  • Initial support now at 7700, with huge OI of 60.81 lacs and below that at 7600 with huge OI of 59.90 lacs.
  • Initial resistance now at 7800, with OI of 46.07 lacs and above that at 7900 with OI of 48.96 lacs.
  • Day Range as per Option Table is 7685 - 7821 and as per VIX is 7708 - 7827 with 7749 as the Pivot.
Option Call for 23-07-2014
Buy Nifty 7700CE above 96 for targets of 109, 123 SL - 85
Buy Nifty 7800PE above 88 for targets of 106, 140 SL - 83

India VIX : 14.64 down by 0.26 points
Call OI : 41966150
Put OI : 45713400
PCR OI : 1.089
SMR : 13.44 (Bullish: The 7700PE writers in a single day added more than 32 lacs OI and in the process have taken control of the Option Table with 7800CE level now looking susceptible in front of the resurgent Bulls...)