Wednesday, October 8, 2014

Option Open Interest for 08-10-2014

Inference
The index opened weak at 7829, but saw some buying interest to move above the previous days close only to be sold off. The index oscillated in a narrow range of 54 points keeping previous days close as pivot but closed just weak at 7842.70, a loss of 9.70 points. The broader market was also negative, with 672 advances to 862 declines. The series range has narrowed down to 7800-8100.
  • Call option 7900-8200 added huge 20.87 lacs OI with profit booking seen at 8400 and above strike prices.
  • Put option 7700-7400 added huge 15.50 lacs OI with short covering seen at 7900 and above strike prices.
  • Nifty Open Interest is at 1,63,21,650 up by 50,500, with small decrease in price, probably short build-up.
  • Bank Nifty Open Interest is at 15,66,650 up by 17,000, with increase in price, probably long build-up.
  • FII’s sold 2.48 lacs Futures, which includes 9286 contracts long liquidation and 4332 contracts short covering, with decrease in net OI by 13618 contracts (includes 32676 longs to 37630 shorts for the day) and the average price per contract comes to around 7869.97.
  • FII’s Index future open contract as on date is 214324 Longs to 64266 Shorts, net long 150058 contracts.
  • Initial and best support still at 7800, with huge OI of 57.29 lacs and below that at 7700 with OI of 52.58 lacs.
  • Initial resistance at 7900, with huge OI addition of 3.68 lacs and above that at 8000 with huge OI of 52.24 lacs.
  • Day Range as per Option Table is 7780 - 7911 and as per VIX is 7785 - 7901 with 7843 as the Pivot.
Option Call for 09-10-2014
Buy Nifty 7900CE above 102 for targets of 113, 125 SL - 95
Buy Nifty 7800PE above 69 for targets of 79, 93 SL - 64

India VIX : 14.11 down by 0.35 points
Call OI : 37914550
Put OI : 37413900
PCR OI : 0.987
SMR : 14.30 (Bearish: Though the index closed flat but huge liquidation seen at 7800, seems disturbing for the Bulls, add to that the best resistance has moved down to 8100, Bulls right now in a spot of bother...)