Options/futures data for 16th Sep (EOD)

Summary:

1. Yesterday's rise above 5900 didn't have any options support and hence we saw a very decent correction from the intraday top above 5913.

2. The story of the day was -- finally there is someone writing calls at 6000/5900!! Not much though but its a good start. And given the pain options writers at 5800-5500 went through a few days back, I hope these guys are smarter.

3. Not many willing to write puts at 5700/5600 and infact OI is being shed at those levels. Either its profit booking OR because this market is too volatile and you never know when it can fall 100+ points.

4. And PCR close to or above 1.8 ROCKS! It has never failed to predict a temporary top in last 3 occasions. So its a metric one can't ignore. By EOD PCR cooled off to 1.72 - because of call writing at 5900/6000 and some lower level put covering.

Nifty Futures:

SEP: 3.93Cr OI up 1.5 -- From last few days there is either OI covering or very small OI addition. So primary reason for this run is short covering. If longs get added - the market will sustain and go up.

OCT: 40L OI up 11%

Banknifty Futures:

26.3L OI down 3% - The short covering is more evident in Banknifty.

Weekly MP chart:

5802 being the weekly VAL - bulls need to defend it.