Nifty Open Interest Analysis

[Option.Trader]

Date : 4.4.13

Got hold of a few more statistics by NSE which should interest us... there are statistics around client positions... so DII's, FII's , Retail and their positions in all the derivative segments... only caveat being, today i'm able to only see april 3rd data... cant seem to find today's client wise position and not sure why NSE would want to delay that by a day

Would love to hear experts opinion on how to make sense of it...

For today's trade... plain and simple... markets have turned bearish with a bearish breakaway gap down being formed today.. unless that gap gets filled (5640-5672) the trend is clearly bearish... dont try to do bottom fishing.. instead use the pullbacks to sell into

54 L shares got added into 5600-5800 Call levels.. 5700 OI above 70 L indicates market top being formed . 21L shares added to 5600 means a shift may be in the offering to the top being shifted downwards

30L got unwound in Puts. 5600 unwound 13L after fall below 200DMA. speculative buying seein in 5300 Put

all in all .. 2nd massive buying of options day by FII's.. only on the call do we see massive buying.. so will they raise the markets on a dead cat bounce and then sell into.. without the client positional data for today cant be for sure

 

[SexyTrader]

Interesting... in Gambling there is something called as beginners luck... would love to see where your strategy takes you... We all have our instincts.. looks like you are acting on them and making some decent profits... but without a method to the madness very difficult to replicate and may not work for all

But its been going well for a long time, so never got around putting a method to this "madness of sorts"

Most times, I have felt that instincts helped me more than all the charts/news/indicators in the world

And I realized OPTIONS are safe DOUBLERS/TRIPLERS......as long as we get in/out at the right price with time on our side!

 

[Option.Trader]

But its been going well for a long time, so never got around putting a method to this "madness of sorts"

Most times, I have felt that instincts helped me more than all the charts/news/indicators in the world

And I realized OPTIONS are safe DOUBLERS/TRIPLERS......as long as we get in/out at the right price with time on our side!

its tempting i agree... a few years back i used to have the same "hunch" philosophy... got me a few obscene profits.. but then it made me so overconfident that i practically lost everything gained... thats when i started focusing on a specific strategy and most importantly following it with all the noise around.. to each his own i guess

 

[jamit_05]

Yesterday's long trade will have to be exited prior to SL hit... SGX below yesterday's low... still bearish. Will watch for opening action before exiting.

Forget fresh longs, only profit booking of shorts will give a jump of 50 odd points... dead cat bounce.

 

[jamit_05]

1) 5700 CE is now the new resistance. Any rallies near it can safely be shorted.
2) 5600 PE has still not completely broken down. A rally is still possible.

 

[marimuthu13]

1) 5700 CE is now the new resistance. Any rallies near it can safely be shorted.
2) 5600 PE has still not completely broken down. A rally is still possible.

Hi,
Coulfy you please bit elabrate on 5700 CE , where we can short 5700 CE..

 

[boarders]

5600pe has dropped 4% from morning open and 5600 ce and 5500ce have added 19% and 13% respectively -asper odin data

 

[sabhlok_r]

5600pe has dropped 4% from morning open and 5600 ce and 5500ce have added 19% and 13% respectively -asper odin data

so we can see 5550 in nf today

 

[jamit_05]

5600 PE has now affirmatively lost ground. Any rally will find strong shorting... sub 5500 levels will be reached before expiry...

 

[Option.Trader]

Date: 5.3.2013

Teh down trend continues... Its very frustrating that Nifty releases the participant wise positions a day later... if you see yesterdays trade (shown below) you can clearly see that Retail(Assuming client means retail) were playing for a dead cat bounce which didnt materialize whereas FII's massively bought put longs..todays FII ata also indicates 387 crores of options buying.. so speculative money is buying OTM puts..5700 looks to be the top of this series... for people who wanted to try some option writing.. you can start with one lot of writing 5700CE on a bounce back. SL-20 points or 12% unwinding in OI to see the nuances of writing nifty