Sunday, August 3, 2014

Option Open Interest for 01-08-2014

Inference
The index opened very weak on the back of bad global cues, but saw some short covering in the morning only to be sold off in the afternoon session to the lows of the day around 7594, but closed just above the psychological level of 7600 at 7602.60, still a huge loss of 118.70 points. The broader market was also very weak, with 471 advances to 1067 declines. Range at the start of the series works out to 7300-8000.
  • Call option 7500-8100 added huge 47.18 lacs OI with small short covering seen at 7200 and below strike prices.
  • Put option 7600-7100 added huge 43.12 lacs OI with short covering seen at 7900 and above strike price.
  • Nifty Open Interest is at 1,24,73,850 down by 7,44,100, lacs with decrease in price, most probably huge long liquidation.
  • Bank Nifty Open Interest is at 13,51,050 up by 51,750, with decrease in price, most probably short build-up.
  • FII’s sold huge 14.99 lacs Futures, which includes 24103 contracts long liquidation and 5875 contracts short addition, with decrease in net OI by 18228 contracts (includes 63657 longs to 93635 shorts for the day) and the average price per contract comes to around 7619.37.
  • FII’s Index future open contract as on date is 166918 Longs to 80813 Shorts.
  • PCR Open Interest (Volume) is hovering around 1.012
  • Initial and very good support at 7600, with huge addition of 10.44 lacs OI for the day, whereas best support at 7300 with highest OI of 55.64 lacs.
  • Initial resistance at 7700, with huge addition of 12.84 lacs for the day, whereas best resistance at 8000 with OI of 49.11 lacs.
  • Day Range as per Option Table is 7563 - 7697 and as per VIX is 7542 - 7663 with 7638 as the Pivot.
Option Call for 04-08-2014
Buy Nifty 7700CE above 99 for targets of 119, 150 SL - 90
Buy Nifty 7600PE above 110 for targets of 130, 151 SL - 94

India VIX : 15.22 up by 1.40 points
Call OI : 26713150
Put OI : 27035300
PCR OI : 1.012
SMR : 15.04 (Bearish: Though Nifty closed near 7600, but the support at 7600 looks good enough whereas resistance starts from 7800 level, Sell on Rise seems to be logical option...)