Sunday, November 9, 2014

Option Open Interest for 07-11-2014

Inference
The index opened flat to negative but went up to touch the highs of the day within the first few minutes of trade at 8360. Profit booking saw the index dip below 8300 only to be bought and closed flat at 8337.00, small loss of 1.30 points. The broader market was weak, with 682 advances to 875 declines. Range developing for the series is 8000-8500.
  • Call option 8300-8700 added huge 14.81 lacs OI with short covering seen at 8200 and below strike prices.
  • Put option 8400-8000 added huge 17.25 lacs OI with profit booking seen at 7900 strike price.
  • Nifty Open Interest is at 2,30,72,675 up by 3,78,350, with no change in price, probably long build-up.
  • Bank Nifty Open Interest is at 21,01,350 down by 97,375, with small decrease in price, probably long liquidation.
  • FII’s bought 4.41 lacs Futures, which includes 20204 contracts long build-up and 2551 contracts short build-up, with increase in net OI by 22755 contracts (includes 63881 longs to 46228 shorts for the day) and the Average Price comes to 8337.20.
  • FII’s Index future open contract as on date is 725131 Longs to 115511 Shorts, net long 609620 up by 17653 contracts.
  • Initial support at 8300, with huge OI of 35.41 lacs and below that at 8200 with huge OI of 47.15 lacs.
  • Initial resistance still at 8400, with OI of 44.42 lacs and above that at 8500 with OI of 44.84 lacs.
  • Day Range as per Option Table is 8269 - 8394 and as per VIX is 8275 - 8399 with 8329 as the Pivot.
Option Call for 10-11-2014
Buy Nifty 8400CE above 78 for targets of 93, 107 SL - 69
Buy Nifty 8300PE above 69 for targets of 80, 99 SL - 60

India VIX : 14.11 up by 0.35 points
Call OI : 28311600
Put OI : 36439475
PCR OI : 1.287
SMR : 10.96 (Bullish: Third day in a row the index stayed within a small range and closed flat, but the PE writers made sure that 8200 level would be a very good base to move forward, though stay cautious at higher levels...)

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