Thursday, July 31, 2014

Option Open Interest for 28-07-2014

Inference
The index opened flat around 7785, and stayed in a narrow range of 20 points for the better part of the first half, but saw huge un-winding to close nears the lows of the day at 7721.30, a huge loss of 70.10 points. The broader market was also weak, with 728 advances to 789 declines. Range at the start of the series works out to 7300-8000.
  • Call option 7500-8300 added huge 46.36 lacs OI.
  • Put option 7700-7100 added huge 39.29 lacs OI with short covering seen at 7800 strike price.
  • Nifty Open Interest is at 1,32,17,950 up by 32,70,550, whereas July series was down by 29.05 lacs with decrease in price, most probably 100% rollover with small short build-up.
  • Bank Nifty Open Interest is at 12,99,300 up by 3,21,500, whereas July series was down by 3.49 lacs with decrease in price, mostly rollover with small long liquidation.
  • FII’s bought 1.00 lacs Futures, which includes 91863 contracts long liquidation and 119293 contracts short covering, with decrease in net OI by 211156 contracts (includes 157609 longs to 155604 shorts for the day) and the average price per contract comes to around 7740.97.
  • FII’s Index future open contract as on date is 191021 Longs to 74938 Shorts.
  • PCR Open Interest (Volume) at start of series is just above 1 at 1.040
  • Initial support at 7700, with huge addition of 7.79 lacs OI for the day, whereas best support at 7300 with highest OI of 48.18 lacs.
  • Initial resistance at 7800, with huge addition of 6.34 lacs for the day, whereas best resistance at 8000 with OI of 39.94 lacs.
  • Day Range as per Option Table is 7675 - 7799 and as per VIX is 7665 - 7777 with 7741 as the Pivot.
Option Call for 01-08-2014
Buy Nifty 7800CE above 98 for targets of 113, 140 SL - 89
Buy Nifty 7700PE above 89 for targets of 100, 112 SL - 79

India VIX : 13.82 down by 0.07 points
Call OI : 21230550
Put OI : 22074000
PCR OI : 1.040
SMR : 13.29 (Bearish to Neutral: The New Series has started with a Huge Range of 7300-8000 and the index comfortably placed near the centre, a close below 7700 will tilt the scale in favour of the Bears...)