Nifty Open Interest Analysis

[mangup]

Oh, Yes... money always comes to India.

Good idea.. looking at Infy OI the bias is bearish. Support at 2800 and strong resistance at 2900.

And infy is already up 2.5% before results... are the results gonna be so good that it will break above 2900... I doubt it. But, yes if results are bad it may lose 2.5% too... lets see...

Will it be wise to buy 3100CE & 2600PE both?

 

[javedk]

@RM

Since you follow graph you should post a write-up for important observations like any progress in bear or bull power, major liquidation or signs of trend reversal.

Is this a trend reversal or a pullback, if a pullback to what extent ?

 

[sridhar]

Today, during the open, 55 54 53 Pe added 40L in OI. That was strange.

If for some reason this dissolves away. Imagine the downside potential. Then one could say for sure that 5435 will be reached and start speculating over 5235. But, till then underestimating bulls may prove bad for business.

The CE side has not increased anywhere in proportion... now is the chance.

Assuming current LTP the Put positions are in profit(very thumb rule calculations) till approx these levels:-
5600PE - till 5503 64L OI
5500PE - till 5450 68L OI
5400PE- till 5375 67L OI
5300PE - till 5288 47L OI
PE side data shows bottomside expected upto 5503/5450.
Fall below that will be then major.

5300CE - below 5566 not too much OI
5400CE - below 5580 only 10L OI
5500CE - below 5606 30L OI.

So CE side data is showing higher possibility of fall

Which is why till 5525/5481(strong daily levels) I do not anticipate 5000pe cracking.

 

[jamit_05]

Will it be wise to buy 3100CE & 2600PE both?

Do you mean for Infy? Well that would be too far. Usually strangles are bought to take advantage of any news within the week.

 

[jamit_05]

Is this a trend reversal or a pullback, if a pullback to what extent ?

Pullback can reach as far as 5700. But, I will be taking long positions above 5620 Spot.

Trend reversal to LONG only above 5750 Spot.

 

[shivan]

5500 pe now OI > 70L

 

[spkreddy]

5500 pe OI>70L what we can guess on this ?

 

[R M]

@RM

Since you follow graph you should post a write-up for important observations like any progress in bear or bull power, major liquidation or signs of trend reversal.

@jamit_05

basically FII net position is an indicator of their bias and it is not wise to trade against that.

Will surely update if there is a drastic change in their positions.

regards.
rm

 

[sridhar]

5500 pe OI>70L what we can guess on this ?

Bulls expect 5450(approx) to be safe.
And bears expect 5659 to be safe.

 

[shivan]

now both 5400 pe & 5500 pe above 70L and 5800 CE shed more than 12% of OI.