Options/futures data for 21st Sep (EOD)

Summary:

1. Call writers showing some confidence from the intraday selloff and wrote decent amount of calls at 6100 & small amount of calls at 6000.

2. Bulls are relentlessly writing puts at each level - 20L added to 6000PE & 5900PE - As of now 5900 is the support for this market - If market reverses due to high PCR these adventurous put writers will be forced to cover.

3. What I don't like is put covering at 5800. In fact if bulls are so confident - why wouldn't they add another 20L to 5800PE? Its almost free money for bulls. If they think they can defend 5900 - then 5800 puts should be written, not covered.

4. PCR - the Nifty nemesis is at 1.86. With yesterday's 1.84 PCR we had a decent intraday sell off. I am still skeptical of 6000+ holding unless PCR cools off.

Nifty Futures:

SEP: 3.68Cr OI down 6% -- 6000 seems to a good psychological level - hence profit booking

OCT: 63L OI up 20%

Banknifty futures:

22.8L - OI down 6% -- Relentless profit booking. From last 1 week OI is down 16%. We saw similar pattern in August close to expiry when Banknifty touched 11100 levels and the following week Banknifty fell almost 500 points. If longs don't get added these levels - then I am very skeptical of this level sustaining.