Nifty Open Interest Analysis

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Dear friends,

i hope exp people here will advise me..i am planing to use option calculator..my problem is

i can enter underlying cost,strike price..how much we need to enter Rate of Int (9%) ? How much we need to enter in volatily ?(is it implied or historical)

the problem is suppose if i enter annual volatality (taken from nse website) the shown call and put price is diff than actual cal and put price..please clarify these doubts

i would like to thank if you can teach me how to use blackscholes cal for our options ?

thanks in advance..i am expeciting reply from you
 

jamit_05

Well-Known Member
All bets are off... news of Unilever buying huge stake in HUL to the tune of 29000Cr... this should hammer down the rupee and then send Nifty up up and away
Is this stake sale gonna happen as a result of dilution or purchase from the open market? Either way, they may not buy it at CMP.

On another note, a similar game happened in Sugar stocks. Gov declared deregulation yet the prices fell. And in TCS. Times are very fickle, often the reverse ends up happening. TCS results were good, probably the best, yet the stock lost 13% from the Top.

FIIs might see this as an opportunity to sell stock. Its the month of May.

But yes, after this news HUL could be purchased at strong weekly supports.
 

TraderRavi

low risk profile
Shares in Hindustan Unilver Ltd rose 20 percent in early morning trade after parent Unilever Plc, along with Unilever N.V., made an open offer to acquire 22.52 percent of the company at 600 rupees a share, a premium of about 21 percent over Monday's closing price.

In a deal valued at about $5.4 billion, Unilever also said the offer to buy stake in Hindustan Unilever is expected to begin in June 2013.
 
We had some HUL shares. Sold off at approx 590 on the morning rise. Our logic:-a) Wife has observed that share prices tend to drift lower after buyback is announced. b) Buyback is at 600 & we are selling @ 10Rs. less, but getting money in hand 2 months early. Will use proceeds to purchase other stocks.
 

jamit_05

Well-Known Member
Shares in Hindustan Unilver Ltd rose 20 percent in early morning trade after parent Unilever Plc, along with Unilever N.V., made an open offer to acquire 22.52 percent of the company at 600 rupees a share, a premium of about 21 percent over Monday's closing price.

In a deal valued at about $5.4 billion, Unilever also said the offer to buy stake in Hindustan Unilever is expected to begin in June 2013.
That is big news. Them buying at Rs.600.

But, yet it reeks danger. Stock market is famous for showing free money, and then making the public pay for it.

The market has already discounted 25 Bps by rising so much and is expected to further rise and make new highs if expectation are surpassed and 50 Bps is cut.

Imagine, on 3rd May RBI announces no rate cut. Then the HUL news will be prove to be a perfect storm for fresh/late retail investors. Then it will feel like its May.

I only intend to raise a sense of caution.
 
The Bulls have started positioning themselves for around 5800 bottom. Need to wait till Friday for a clear indication. Looks like Bears are still waiting for RBI policy.

My gut feeling- 5965 in NF-1 is the first major resistance on upside & then 5989. Unless there is a major political reprieve for Govt. I do not see 6000 being taken out easily.
 

manojborle

Well-Known Member
5700 CAll Open interest changed by -602,950
and 5900 PE open interest changed by -108,850
what does it mean
should be profit booking in 5700 call as many wont expect nf to make a new high
 
5700 CAll Open interest changed by -602,950
and 5900 PE open interest changed by -108,850
what does it mean
My reading:-
5700CE - excessively bearish view @ this strike - some of them are changing their view & exiting or booking profit from call writing done earlier.

5900PE- Normal ebb & flow as people adjust positions & book profits.
 
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