Sunday, July 27, 2014

Option Open Interest for 25-07-2014

Inference
The index opened flat, but saw huge selling pressure from the onset to move to the lows of the day at 7748. The buyers tried to pull the index up from the lows but were unable to do much and Nifty closed at 7828.20, loss of 40.15 points. The broader market was also weak, with 387 advances to 1162 declines. Broader range for the series is at 7700-7900.
  • Call option 7800 added 6.89 lacs huge amount of OI with profit booking seen at 7900 and above strike prices.
  • No Put option added OI at any strike with short covering seen at 7700 and above strike prices.
  • Nifty Open Interest is at 1,48,49,950 down by 16,01,050, whereas Aug series added just 4.05 lacs with decrease in price, most probably some rollover with huge long liquidation.
  • Bank Nifty Open Interest is at 18,45,775 down by 47,800, whereas Aug series added 1.34 lacs with decrease in price, most probably long liquidation in current series with huge short build-up in next series.
  • FII’s sold 0.43 lacs Futures, which includes 9359 contracts long addition and 10211 contract short addition, with increase in net OI by 19570 contracts (includes 62794 longs to 63646 shorts for the day) and the average price per contract comes to around 7772.15.
  • FII’s Index future open contract as on date is 235150 Longs to 163502 Shorts.
  • PCR Open Interest (Volume) is at 1.088
  • Initial and best support now at 7700, with huge OI of 64.35 lacs.
  • Initial resistance now at 7800, with OI of 53.93 lacs and above that at 7900 with huge OI of 55.40 lacs.
  • Day Range as per Option Table is 7730 - 7856 and as per VIX is 7732 - 7848 with 7793 as the Pivot.
Option Call for 28-07-2014
Buy Nifty 7700CE above 102 for targets of 129, 160 SL - 95
Buy Nifty 7800PE above 48 for targets of 66, 88 SL - 42

India VIX : 14.22 down by 0.50 points
Call OI : 40709700
Put OI : 44303350
PCR OI : 1.088
SMR : 13.07 (Bullish to Neutral: Bears are back? Well need some more confirmation and only a close below 7700, which still has very good support, the Bears can breathe easy, till then its Bulls all the way...)