Tuesday, August 5, 2014

Option Open Interest for 05-08-2014

Inference
The index opened strong above the psychological level of 7700 and stayed in a narrow range till the RBI credit policy came out. The index saw huge volatile move after the policy declaration and moved to the lows of the day around 7638 only to see the Buyers back in action to move the index back in the green to close near the highs at 7746.55, a huge gain of 62.90 points. The broader market was also very strong, with 983 advances to 555 declines. Range for the time being at 7300-8000.
  • Call option 7600-8200 added huge 21.24 lacs OI with profit booking seen at 8300 and above strike prices.
  • Put option 7900-7200 added huge 21.70 lacs OI with profit booking seen at 7100 and below strike price.
  • Nifty Open Interest is at 1,31,23,850 up by 3,74,150, lacs with increase in price, most probably long build-up.
  • Bank Nifty Open Interest is at 13,48,750 up by 20,375, with increase in price, most probably long build-up.
  • FII’s sold 2.64 lacs Futures, which includes 2208 contracts long liquidation and 3064 contracts short addition, with increase in net OI by 856 contracts (includes 45738 longs to 51010 shorts for the day) and the average price per contract comes to around 7763.04.
  • FII’s Index future open contract as on date is 173887 Longs to 85562 Shorts.
  • PCR Open Interest (Volume) has moved up to 1.123.
  • Initial support now at 7700, with huge addition of 5.99 lacs for the day, whereas best support at 7300 with highest OI of 59.19 lacs.
  • Initial resistance has moved up to 7800, with OI of 36.35 lacs, whereas best resistance at 8000 with OI of 53.29 lacs.
  • Day Range as per Option Table is 7653 - 7791 and as per VIX is 7690 - 7803 with 7712 as the Pivot.
Option Call for 06-08-2014
Buy Nifty 7800CE above 85 for targets of 103, 122 SL - 74
Buy Nifty 7700PE above 88 for targets of 109, 145 SL - 79

India VIX : 13.95 down by 0.87 points
Call OI : 30346100
Put OI : 34073450
PCR OI : 1.123
SMR : 12.42 (Bullish with Caution: RBI Credit Policy was on expected lines and after an initial hiccup the Bulls took charge to end the day near the highs, with Option Table slowly turning Bullish, with only resistance of note at 8000...)