Sunday, August 10, 2014

Option Open Interest for 08-08-2014

Inference
The index opened weak below 7600 and stayed weak throughout the entire session with each small up-move being sold, and made a low of 7540 only to close a bit higher at 7568.55, still a huge loss of 80.70 points. On a week on week basis the index lost 34.05 points of around 0.45%. The broader market was very weak, with just 296 advances to 1262 declines. Range for the time being still at 7500-8000.
  • Call option 7500-7900 added huge 28.70 lacs OI with profit booking seen at 8000 and above strike prices.
  • Put option 7400 added huge 3.08 lacs OI with short covering seen at 7600 and above strike price.
  • Nifty Open Interest is at 1,22,03,000 down by 8,89,300, with decrease in price, most probably huge long liquidation.
  • Bank Nifty Open Interest is at 15,65,575 up by huge 1,14,200, with decrease in price, most probably short build-up.
  • FII’s sold huge 36.00 lacs Futures, which includes 44465 contracts long liquidation and 27544 contracts short build-up, with decrease in net OI by 16921 contracts (includes 32721 longs to 104730 shorts for the day) and the average price per contract comes to around 7562.79.
  • FII’s Index future open contract as on date is 122499 Longs to 125644 Shorts, net short 3145 contracts.
  • PCR Open Interest (Volume) is down below 1 to 0.933.
  • Initial and best support at 7500, with huge OI of 55.02.
  • Initial resistance now at 7600, with huge addition of 12.94 lacs for the day, whereas best resistance still at 8000 with OI of 55.82 lacs.
  • Day Range as per Option Table is 7500 - 7639 and as per VIX is 7513 - 7625 with 7567 as the Pivot.
Option Call for 11-08-2014
Buy Nifty 7600CE above 93 for targets of 109, 127 SL - 89
Buy Nifty 7600PE above 102 for targets of 117, 135 SL - 96

India VIX : 14.62 up by 0.48 points
Call OI : 34894000
Put OI : 32558400
PCR OI : 0.933
SMR : 15.67 (Bearish with Caution: It was carnage at the bourses, with the index closing below the psychological level of 7600 after many days, though best support around 7500, Sell on rise continues...)