Summary:
1. OI data from yesterday's action is very interesting in few aspects. Two things that stand out:
i) despite the 130+ point fall in Nifty from its peak, less than 25% of total number of puts added yesterday @6200/6300/6100 were covered.
ii) Less than 50% of calls covered yesterday @6200 were added
What does this mean? Strong support @6000 but need more OI addition to 6100/6200/6300 for sustaining higher levels
2. I just compared this month's data with last month's data and one thing that stands out is that in September, the moment a level (say 5800/5900/6000) was crossed immediately 70L+ puts were written there. This month, despite closes above 6200 once & 6100 several times - both the levels don't have that BIG supporting put OI of 70-80L. That's exactly the reason why, bears are able to make that 100+ point intraday sharp falls.
3. 6300 is the resistance with 64L calls vs 28L puts
4. PCR has dropped from 1.39 to 1.35 due to put covering and call addition.
Nifty Futures:
2.64 Cr OI down 7.8% (26L shares were added yesterday and 22L shares were cut today) -- profit booking from yesterday's longs.
Banknifty Futures:
14.9L OI flat -- Unless we see significant addition of longs/shorts to OI, this volatility will continue.
Posts
3 comments:
Banknifty Future : 12785-12647-12630
Nifty Future : 6270-6197-6195
Value areas corrected.
shai,viren,girish,
i wish to understand this 9.15 am opening in a little simple manner-
- why NSE chose to do that? to do away with this GAP UP/DOWN concept?
- what kind of impact it will have on daily trading?
Janak,
Here is a link from Reuters that explains the pre-opening auction process:
http://in.reuters.com/article/idINIndia-52223720101015
"Under the call auction, orders are accumulated for the first seven minutes of the session, followed by a one-minute halt, after which the trades will be executed at a single price during a four-minute window. Between 9:12 and 9:15 a.m., orders that were made but not filled will be executed at market prices."
Basically my understanding is that this is to give time to participants to put in their price before the open rather than react to price at the open (which can be manipulated)
We need to see how this works out. SEBI has set 3 months time for review of this.
Here's a more detailed article from moneycontrol:
http://www.moneycontrol.com/news/market-news/nse-to-launch-call-auctionpre-open-sessionoct-18_490784-0.html
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