Wednesday, July 30, 2014

Option Open Interest for 30-07-2014

Inference
The index opened flat around 7746, but saw selling pressure from the onset to move to the lows of the day at 7707. The responsive buyers came back to pull the index out of red and to the highs of the day around 7800 to close just below 7791.40, gain of 41.75 points. The broader market though was weak, with 737 advances to 803 declines. Range for expiry has boiled down to 7700-7850.
  • No Call option addition was seen whereas huge short covering was seen at 7800 and below strike prices.
  • Put option 7800-7700 added huge 7.72 lacs OI with profit booking seen at 7600 and below strike prices.
  • Nifty Open Interest is at 96,68,000 down by 22,62,900, whereas Aug series added 37.06 lacs with increase in price, most probably 100% rollover with huge long build-up.
  • Bank Nifty Open Interest is at 12,93,200 down by 2,01,950, whereas Aug series added 1.89 lacs with increase in price, mostly rollover with small long liquidation.
  • FII’s bought huge 8.11 lacs Futures, which includes 33221 contracts long addition and 16996 contracts short addition, with increase in net OI by 50217 contracts (includes 204827 longs to 188602 shorts for the day) and the average price per contract comes to around 7797.79.
  • FII’s Index future open contract as on date is 282884 Longs to 194231 Shorts.
  • PCR Open Interest (Volume) is at 1.208
  • Initial and best support at 7700, with huge OI of 68.68 lacs.
  • Initial resistance at 7800, with OI of 57.27 lacs and above that at 7900 with OI of 43.64 lacs.
  • Day Range as per Option Table is 7710 - 7835 and as per VIX is 7735 - 7848 with 77 as the Pivot.

Developing Option Table of August 2014
Option Call for 31-07-2014
Buy Nifty 7700CE above 88 for targets of 110, 133 SL - 70
Buy Nifty 7800PE above 45 for targets of 68, 110 SL - 39

India VIX : 13.89 down by 0.43 points
Call OI : 35776100
Put OI : 43229350
PCR OI : 1.208
SMR : 11.50 (Bullish to Neutral: The 7700 Level came into play and was promptly lapped up by the buyer to test the other extreme at 7800, with the PE writers having an edge for Expiry tomorrow...)