Nifty Intraday Pivot Points

[Aqua9]

Hi Savant

Cleared CA5000 and 5100, holding on PE 5000 wat is your views... shall i square it today

rgds
arun

 

[hills_5000]

amazing how you do that

Hi SM

No Dip Expected....

Happy & Safer Trading

SavantGarde

 

[MurAtt]

amazing how you do that

Check the chart. The right side shows y'days Put n Call OI.
The long left side shows today's OI.

Check the 4900, 5000 & 5100 PUTS OI.
4900 has increased from 4603600 to 5413750 (increase of approx 18%)
5000 has increased from 2615450 to 4078400 (increase of approx 64%) - whopping!!!!
5100 has also increased very good mannerly in % terms BUT in vols, it is very low.

Now check CALL OI
5000 has decreased from 3652550 to 3219850 (decrease of approx 12%)
5100 has decreased from 3266350 to 2443050 (decrease of approx 26%) - makes a difference!!!!
5200 has decreased from 3611350 to 3217250 (decrease of approx 12%)

Shows that mkts have a lot of upside left i.e. as of today. Change in OI will signal newer highs or dips in market.

This info is available on the NSE website Real Time and can be checked anytime during the day as many times as you want to gauge the market direction.

I usually check when mkts are rangebound to see what is being written and what is being covered/sq off.

 

[hills_5000]

Thanks a lot Murtaza.. just one question . How do you get yesterday's OI. I too keep checking the OI [learnt here again ].. but do not get yesterday's OI . So am i looking at the wrong place ?

I am looking at the following :-

Derivatives
Derivatives Stock-watch
Get Quote
Most Active Contracts
Most Active Calls | Puts
Option Chain
Most Active Underlyings

And thereafter i select "MOST ACTIVE CALLS" and then "MOST ACTIVE PUTS"

And in both these selections there is no data at any moment showing yesterday's OI.

regards

 

[hills_5000]

Hi Murtaza,

And yes... the data makes me think about writing a 5000 PE tommorow .. considering the long weekend tommorow onward and ofcourse provided the OI doesnt shed . Intend to shed it at a later date as we go up while watching the OI carefully.

regards

 

[MurAtt]

Here is where you get the Option OI details

http://nseindia.com/marketinfo/fo/optionKeys.jsp?symbol=NIFTY&instrument=OPTIDX&date=29OCT2009

 

[ANMOL]

Hi Murtaza,

My understanding is that if the call OI is decreasing (5000, 5100 & 5200 OI decreasing) and put OI increasing (4900, 5000 & 5100 OI increasing) then market is expected to go down. Please correct me if I am wrong.

Regards
ANMOL

Hi SG, Your views are always welcome.

Check the chart. The right side shows y'days Put n Call OI.
The long left side shows today's OI.

Check the 4900, 5000 & 5100 PUTS OI.
4900 has increased from 4603600 to 5413750 (increase of approx 18%)
5000 has increased from 2615450 to 4078400 (increase of approx 64%) - whopping!!!!
5100 has also increased very good mannerly in % terms BUT in vols, it is very low.

Now check CALL OI
5000 has decreased from 3652550 to 3219850 (decrease of approx 12%)
5100 has decreased from 3266350 to 2443050 (decrease of approx 26%) - makes a difference!!!!
5200 has decreased from 3611350 to 3217250 (decrease of approx 12%)

Shows that mkts have a lot of upside left i.e. as of today. Change in OI will signal newer highs or dips in market.

This info is available on the NSE website Real Time and can be checked anytime during the day as many times as you want to gauge the market direction.

I usually check when mkts are rangebound to see what is being written and what is being covered/sq off.

 

[MurAtt]

Anmol

How? If 5100 Call OI is decreasing means CALL SELLER is squaring off positions bcoz he expects mkts to rise and cross 5100. If mkt to fall then CALL SELLER will nett the premium.

Inverse with the PUTS.

Hope this clears your

 

[VJAY]

Dear SM,
Nice explanation...Am also think reverse before this valuable post.....thanks very much....

 

[ANMOL]

Hi Murtaza,

Please comment on the below para:

Interpretation of open interest in futures
The rules for interpreting open interest changes are similar to those for volume, but require additional explanation.

With prices advancing in an uptrend and total open interest increasing, new money is flowing into the market reflecting aggressive new buying, and is considered bullish.

If, however, prices are rising and open interest declines, the rally is being caused primarily by short covering (holders of losing short positions being forced to cover those positions). Money is leaving rather; than entering the market. This action is considered bearish because the uptrend will probably run out of steam once the necessary short covering has been completed.

With prices in a downtrend and open interest rising, the technician knows that new money is flowing into the market, reflecting aggressive new short selling. This action increases the odds that the downtrend will continue and is considered bearish.

If, however, total open interest is declining along with declining prices, the price decline is being caused by discouraged or losing longs being forced to liquidate their positions. This action is believed to indicate a strengthening technical situation because the downtrend will probably end once open interest has declined sufficiently to show that most losing longs have completed their selling.

Let's summarize these four points:

1. Rising open interest in an uptrend is bullish.

2. Declining open interest in an uptrend is bearish.

3. Rising open interest in a downtrend is bearish.

4. Declining open interest in a downtrend is bullish.

Regards
ANMOL

Anmol

How? If 5100 Call OI is decreasing means CALL SELLER is squaring off positions bcoz he expects mkts to rise and cross 5100. If mkt to fall then CALL SELLER will nett the premium.

Inverse with the PUTS.

Hope this clears your