Wednesday, August 6, 2014

Option Open Interest for 06-08-2014

Inference
The index opened weak and stayed in a narrow range with each up-move being sold off to new low every hour to close near the bottom at 7672.05, huge loss of 74.50 points. The broader market was just negative, with 718 advances to 822 declines. Range for the time being at 7300-8000.
  • Call option 7600-8100 added huge 20.22 lacs OI with profit booking seen at 8300 and above strike prices.
  • Put option 7400-7100 added huge 8.64 lacs OI with short covering seen at 7800 and above strike price.
  • Nifty Open Interest is at 1,37,30,150 up by 6,06,300, with decrease in price, most probably huge short build-up.
  • Bank Nifty Open Interest is at 14,73,975 up by 1,25,225, with decrease in price, most probably huge short build-up.
  • FII’s sold 4.24 lacs Futures, which includes 8682 contracts long addition and 17158 contracts short addition, with increase in net OI by 25840 contracts (includes 41018 longs to 49494 shorts for the day) and the average price per contract comes to around 7674.60.
  • FII’s Index future open contract as on date is 182569 Longs to 102720 Shorts.
  • PCR Open Interest (Volume) is down to 1.074.
  • Initial and very good support now at 7600, with huge OI of 53.99, whereas best support at 7300 with highest OI of 59.44 lacs.
  • Initial resistance now at 7700, with OI of 35.59 lacs, whereas best resistance at 8000 with OI of 57.63 lacs.
  • Day Range as per Option Table is 7619 - 7755 and as per VIX is 7615 - 7729 with 7691 as the Pivot.
Option Call for 07-08-2014
Buy Nifty 7700CE above 106 for targets of 121, 148 SL - 99
Buy Nifty 7700PE above 104 for targets of 118, 133 SL - 95

India VIX : 14.30 up by 0.35 points
Call OI : 32660000
Put OI : 35089500
PCR OI : 1.074
SMR : 13.31 (Bearish to Neutral: The Index closed below the psychological level of 7700 but the PE writers did not panic and still has very good support at 7600 level though resistance now coming up at 7800...)