Monday, August 18, 2014

Option Open Interest for 18-08-2014

Inference
The index opened flat to negative just below 7800 but saw huge buying interest from the morning itself to move higher and higher with each passing hour. The index closed near the highs of the day just below 7900 at 7874.25, a huge gain of 82.55 points. The broader market was also very strong, with 1118 advances to 426 declines. Range has moved up to 7700-8000.
  • Call option 7900-8100 added huge 4.60 lacs OI with short covering seen at 7800 and lower strike prices.
  • Put option 8000-7500 added huge 47.56 lacs OI with profit booking seen at 7400 and below strike price.
  • Nifty Open Interest is at 1,50,34,500 up by 6,41,100, with increase in price, most probably long build-up.
  • Bank Nifty Open Interest is at 18,66,175 up by 2,38,075, with increase in price, most probably huge long build-up.
  • FII’s bought 2.77 lacs Futures, which includes 6980 contracts long build-up and 1446 contracts short build-up, with increase in net OI by 8426 contracts (includes 52678 longs to 47144 shorts for the day) and the average price per contract comes to around 7858.15.
  • FII’s Index future open contract as on date is 180484 Longs to 103637 Shorts, net long 76847 contracts.
  • PCR Open Interest (Volume) has galloped to 1.418.
  • Initial support now at 7800, with huge OI of 59.06 lacs, whereas next support at 7700 with huge OI of 72.32 lacs.
  • Initial resistance at 7900, with huge OI of 51.42 lacs, whereas best resistance still at 8000 with huge OI of 72.84 lacs.
  • Day Range as per Option Table is 7788 - 7914 and as per VIX is 7819 - 7930 with 7845 as the Pivot.
Option Call for 19-08-2014
Buy Nifty 7800CE above 107 for targets of 127, 155 SL - 89
Buy Nifty 7900PE above 94 for targets of 119, 153 SL - 89

India VIX : 13.50 up by 0.28 points
Call OI : 34284950
Put OI : 48625550
PCR OI : 1.418
SMR : 9.52 (Bullish: The PE writers are on steroid, with huge addition now at 7900-7700 Level, Holding 7800, more highs possible, but stay cautious at higher levels as the index is in unchartered territory...)