Nifty Open Interest Analysis

[Option.Trader]

Date: 12.4.2013

Infy turned out to be a dampener to the pull back dragging the nifty single handedly. One of the primary reasons i dont invest in stocks for the short run.... how can you live with 20% fall in a single day... it will take ages for you to recover your investment... we have seen this umpteen number of times in the recent past with other stocks also
12L shares got added to 5600CE with bears trying to close out the last hurdle of this pull back.... we had suggested a few days back for first time writers to write 5700CE if they want to experience the writing phenomenon... it should have given them good returns.
On the Put side, all PE unwound, esp 5400-5600 unwound 36% of OI in good volumes suggesting Bulls ran with only their langots for cover...
For any meaningful correction the last breakaway gap that started this bull run would be the first thing to be filled in ... range of 5442-5525.. interesting that they kept the nifty at the higher end of this range... if it fills the gap... go ahead and short at all levels...
Interestingly.. looks like FII's had set themselves up for INfy results and positioned themselves on the short side on 11th rally itself...

 

[jamit_05]

Today, Bears, again, are very much in power. Selling 5500 PE seems to be their center of interest. Look for shorting setups for a profitable trading day.

Expiry Range of 5500-5700 is even more clear today.

The pace at which 5500 PE is gaining OI could cause a fall of another 70 odd points. Brace for impact.

 

[shivan]

Can anyone tell how implied volatility value impact nifty option table.

 

[spkreddy]

Dear Jamit or OT,

5400,5500 pe above 70L can we take it as 5500 is support ?

 

[sridhar]

Looks like a false bounce is taking place. Could have made 10% but was busy with some paperwork. Also I have decided not to go in for these short trades unless my 15min. time frame gives clear signal

If 5550/5557 holds on this up-move could we see a fall in the second half of the day?

 

[jamit_05]

Dear Jamit or OT,

5400,5500 pe above 70L can we take it as 5500 is support ?

Yes, 5500 has been a good support for a while now. We are now watching for it to break.

 

[jamit_05]

Looks like a false bounce is taking place. Could have made 10% but was busy with some paperwork. Also I have decided not to go in for these short trades unless my 15min. time frame gives clear signal

If 5550/5557 holds on this up-move could we see a fall in the second half of the day?

It may not be completely False... the picture is changing from Highly bearish to Neutral. Rely on setups.

 

[jamit_05]

Bulls have taken control of the Option Table. Banks and OilnGas are positive too.

 

[doctorshah]

Amit Does Infy OI anlysis suggest something?

 

[jamit_05]

A note for Positional Traders.

For the April Series. Nifty has formed a clear and strong base at 5500. Consider 5530 - 5500 as the profit booking zone.