Sunday, September 7, 2014

Option Open Interest for 05-09-2014

Inference
The index opened flat, but saw profit booking from the onset to move to the lows of the day around 8050. The responsive buyers came back around the lows, but were unable to move the index above the previous day’s close. The index ultimately closed just below at 8086.85, a small loss of 9.10 points. On a week on week basis the index gained 132.50 points or approx 1.67%. The broader market though was positive, with 887 advances to 674 declines. The range for the series is still at 7900-8300.
  • Call option 8100-8200 added huge 8.21 lacs OI with profit booking seen at 8300 and above strike prices.
  • Put option 8100-8000 added huge 2.11 lacs OI with profit booking seen at 7900 and lower strike prices.
  • Nifty Open Interest is at 1,53,32,050 down by 5,77,800, with decrease in price, probably huge long liquidation.
  • Bank Nifty Open Interest is at 18,42,125 down by 18,350, with decrease in price, probably long liquidation.
  • FII’s sold huge 7.33 lacs Futures, which includes 11366 contracts long liquidation and 3293 contracts short build-up, with decrease in net OI by 8073 contracts (includes 26134 longs to 40793 shorts for the day) and the average price per contract comes to around 8108.85.
  • FII’s Index future open contract as on date is 215721 Longs to just 52520 Shorts, net long 163201 contracts.
  • Initial and best support at 8000, with highest OI of 70.17 lacs and below that at 7900 with huge OI of 54.57 lacs.
  • Initial resistance still at 8100, with OI of 47.48 lacs and above that at 8200 with OI of 56.20 lacs.
  • Day Range as per Option Table is 8041 - 8140 and as per VIX is 8032 - 8142 with 8086 as the Pivot.
Option Call for 08-09-2014
Buy Nifty 8100CE above 98 for targets of 118, 140 SL - 93
Buy Nifty 8100PE above 88 for targets of 101, 119 SL - 79

India VIX : 12.94 down by 0.15 points
Call OI : 32787350
Put OI : 37666800
PCR OI : 1.149
SMR : 11.26 (Bullish: The CE writers for a change added more for the day, but the Bulls are still sitting pretty with solid base now at 8000 level, the index still is Buy on Dips...)