Thursday, September 4, 2014

Option Open Interest for 04-09-2014

Inference
The index opened flat, but saw selling pressure from the onset to move to the lows of the day around 8060. The responsive buyer took control from thereon and moved the index back above 8100 only to see it close just below at 8095.95, a small loss of 18.65 points. The broader market was also negative, with just 536 advances to 1016 declines. The initial range for series is still at 7900-8300.
  • Call option 8200-8500 added huge 9.89 lacs OI with short covering seen at 8000 and lower strike prices.
  • Put option 8100-8000, 7700-7600 added huge 15.51 lacs OI with profit booking seen at 7500 and lower strike prices.
  • Nifty Open Interest is at 1,59,09,850 down by 9,82,000, with decrease in price, probably huge long liquidation.
  • Bank Nifty Open Interest is at 18,60,475 down by 76,900, with decrease in price, probably huge long liquidation.
  • FII’s sold huge 7.31 lacs Futures, which includes 20013 contracts long liquidation and 5387 contracts short covering, with decrease in net OI by 25400 contracts (includes 26917 longs to 41543 shorts for the day) and the average price per contract comes to around 8126.22.
  • FII’s Index future open contract as on date is 227087 Longs to just 49227 Shorts, net long 177860 contracts.
  • Initial and best support at 8000, with highest OI of 69.70 lacs and below that at 7800 with huge OI of 56.26 lacs.
  • Initial and weak resistance at 8100, with OI of just 44.59 lacs and above that at 8200 with OI of 50.88 lacs.
  • Day Range as per Option Table is 8047 - 8144 and as per VIX is 8041 - 8151 with 8091 as the Pivot.
Option Call for 05-09-2014
Buy Nifty 8100CE above 112 for targets of 124, 138 SL - 107
Buy Nifty 8100PE above 88 for targets of 97, 113 SL - 79

India VIX : 13.08 down by 0.31 points
Call OI : 32077750
Put OI : 38461950
PCR OI : 1.199
SMR : 10.91 (Bullish: Though the index closed in Red, the PE writers had the better of the exchanges with huge addition at 8000 level with OI just below 70 lacs, Buy the Dips till this OI stays...)