Thursday, October 16, 2014

Option Open Interest for 16-10-2014

Inference
The index opened weak around 7837 but saw small buying interest to move to the highs of the day around 7894. Profit booking from thereon saw the index nosedive below 7800 and closed near the lows of the day at 7748.20, huge loss of 115.80 points. The broader market was also very weak, with just 258 advances to 1302 declines. The series range for the time being has moved down to 7700-8000.
  • Call option 7600-8200 added huge 45.13 lacs OI with profit booking seen at 8300 and above strike prices.
  • Put option 7700-7300 added huge 12.07 lacs OI with short covering seen at 7900 and above strike prices.
  • Nifty Open Interest is at 1,44,41,200 down by 2,77,600, with decrease in price, probably huge long liquidation.
  • Bank Nifty Open Interest is at 16,07,400 down 14,500, with decrease in price, probably long liquidation.
  • FII’s sold huge 9.21 lacs Futures, which includes 22098 contracts long liquidation and 3671 contracts short covering, with decrease in net OI by 25769 contracts (includes 45191 longs to 63618 shorts for the day) and the average price per contract comes to around 7779.30.
  • FII’s Index future open contract as on date is 153067 Longs to 72883 Shorts, net long 80184 down by 18427 contracts.
  • Initial and best support now at 7700, with huge OI of 51.18 lacs and below that at 7600 with OI of 52.02 lacs.
  • Initial resistance at 7800, with huge OI addition of 10.78 lacs and above that at 7900 with huge OI of 41.40 lacs.
  • Day Range as per Option Table is 7703 - 7859 and as per VIX is 7682 - 7815 with 7791 as the Pivot.
Option Call for 17-10-2014
Buy Nifty 7900CE above 67 for targets of 86, 120 SL - 59
Buy Nifty 7700PE above 72 for targets of 92, 113 SL - 61

India VIX : 16.43 up by 1.84 points
Call OI : 43285900
Put OI : 40027500
PCR OI : 0.925
SMR : 17.77 (Bearish: The Bears have taken over the index with a close below 7800 after 2 months, but need to follow-up on 7800-7900CE level, or else the Bulls may make a comeback fast, Stay cautious at lower levels...)