Open Interest data from 3rd Feb

Tuesday they took it down, wednesday they brought it up by an equal measure.

What's in store for us tomorrow? Data is pointing towards a market tomorrow, which may go down again.

After the inability to take out 4949 today ( which frankly I expected) stocks may open down tomorrow. Data posted on the blog in the afternoon and the one we have now at EOD, show the strike at 4900 increasing the call side OI ( bearish) and reducing the put side ( bullish).

Furthermore, between strikes 4400 and 5400, about 21963 call lots ( bearish) were added today whereas the same strikes witnessed a reduction in Put OI of 31343 lots ( bearish again).

The range remains 4800- 5000 as highlighted. Look for shorts below 4897 and longs above 4945.

Nifty

Well, the breakout above 4949 didn't happen.

Part of the reason was that the heavyweights like Reliance and State bank and Infosys traded below their VWAP most of the day and were nowhere near their highs when Nifty was threatening it's breakout.

Anybreakout by the Nifty without it's leading stars has to be viewed with circumspection.

I will post the Open Interest table later today.

OI for 3rd Feb- Intra update

A quick intra day update at 12.45 pm to discuss the positions taken by smart money.

IMO, the move from yesterday's lows is not over yet.

Notice the declining OI ( in yellow) of the call writers and the increasing OI of the put writers.

There is a good chance we will see 4980-90 later today.

OI data for 2nd Feb

It was an interesting day in the markets and the sell-off today would have caught many a person off-guard.

I was very interested to see what the Option Open Interest table would show at the end of the day, so I had a look at it. Here it is...


The data shows accumulation by put writers of about 33% at 4800, bringing the open Interest there to 6.96 million shares.The immediate posiibility is that of a strong support at current prices, but one must not discount the possibility that should prices hold below 4785, it will bring a strong swift move to the 200 DMA currently around 4600 levels.

The largest call OI base is at 5000 strike with 5.18 million shares.This will be a big resistence for the market to overcome should the levels around 4940+ be seen again.

The range of 4800-5000 has remained the same despite the sell-off today.

One should be playing for the bounce tomorrow.