Thursday, September 25, 2014

Option Open Interest for 25-09-2014

Inference
The index opened flat but saw continuation of the selling pressure from yesterday to move below one psychological level after another, making a low of 7877. Short covering towards the end of the day saw the index close at 7911.85, still a huge loss of 90.55 points. The broader market was also very weak, with just 222 advances to 1355 declines. The New Series starts with a range of 7800-8200.
  • Call option 7400-8600 added huge 55.23 lacs OI.
  • Put option 8500-7400 added huge 56.04 lacs OI.
  • Nifty Open Interest is at 1,57,78,900 up by 34,28,650, with decrease in price, probably short build-up.
  • Bank Nifty Open Interest is at 15,83,475 up by 6,23,575, with decrease in price, probably huge short build-up.
  • FII’s bought 1.59 lacs Futures, which includes 35382 contracts long liquidation and 83228 contracts short covering, with decrease in net OI by 118610 contracts (includes 133129 longs to 129958 shorts for the day) and the average price per contract comes to around 7940.11.
  • FII’s Index future open contract as on date is 216388 Longs to 69918 Shorts, net long 146470 contracts.
  • Initial support at 7900, with OI of 38.61 lacs and below that at 7800 with huge OI of 38.74 lacs.
  • Initial resistance at 8000, with huge OI addition of 8.05 lacs and above that at 8100 with huge OI of 32.29 lacs.
  • Day Range as per Option Table is 7859 - 8006 and as per VIX is 7857 - 7967 with 7936 as the Pivot.
Option Call for 26-09-2014
Buy Nifty 8000CE above 137 for targets of 159, 195 SL - 129
Buy Nifty 8000PE above 132 for targets of 161, 192 SL - 119

India VIX : 13.30 up by 0.76 points
Call OI : 23361800
Put OI : 25219050
PCR OI : 1.079
SMR : 12.32 (Bearish with Caution: The CE writers won the September Expiry game, but a new series starts with good support developing around 7900-7800 and resistance at 8100-8200, a broad range of 400 points...)