Tuesday, August 19, 2014

Option Open Interest for 19-08-2014

Inference
The index opened positive just above 7900, and stayed in a narrow range of 37 points for the entire session of trade with positive bias and closed just below 7900 at 7897.50, gain of 23.25 points. The broader market was also positive, with 934 advances to 602 declines. Range still at 7700-8000.
  • Call option 7900-8200 added huge 23.66 lacs OI with short covering seen at 7800 and lower strike prices.
  • Put option 8000-7700 added huge 38.48 lacs OI with profit booking seen at 7600 and lower strike prices.
  • Nifty Open Interest is at 1,52,28,350 up by 1,93,850, with increase in price, most probably long build-up.
  • Bank Nifty Open Interest is at 19,33,125 up by 66,950, with increase in price, most probably huge long build-up.
  • FII’s bought huge 5.71 lacs Futures, which includes 9083 contracts long build-up and 2333 contracts short covering, with increase in net OI by 6750 contracts (includes 51853 longs to 40437 shorts for the day) and the average price per contract comes to around 7892.12.
  • FII’s Index future open contract as on date is 189567 Longs to 101304 Shorts, net long 88263 contracts.
  • PCR Open Interest (Volume) is still at 1.416.
  • Initial and super support now at 7800, with huge OI of 69.13 lacs, whereas next support is at 7700 with huge OI of 78.92 lacs.
  • Initial resistance still at 7900, with huge OI of 52.32 lacs, whereas best resistance at 8000 with highest OI of 84.26 lacs.
  • Day Range as per Option Table is 7837 - 7958 and as per VIX is 7840 - 7955 with 7899 as the Pivot.
Option Call for 20-08-2014
Buy Nifty 7900CE above 62 for targets of 70, 79 SL - 58
Buy Nifty 7900PE above 55 for targets of 63, 73 SL - 49

India VIX : 13.91 up by 0.41 points
Call OI : 35912000
Put OI : 50840100
PCR OI : 1.416
SMR : 9.83 (Bullish: After 2 days of huge up-move it was a perfect consolidation with the PE writers adding huge at 7900-7800 level, but best resistance is at 8000, stay cautious at higher levels...)