Options OI analysis for 21st Jul:
It looks like possibility of tanking is more now.
Yesterday action on 5400PEs and 5400CEs both adding says indecision at 5400 but overall OI of 5400CE (91L) vs 5400PEs (55L) says time is running out for bulls.
Today if market starts falling I would expect yesterday's 9L 5400PEs to unwind pretty fast. Otherwise if more more puts start getting written @5400 the possibility of Nifty stagnating & expiring at or close to 5400 increase.
Another weird thing is 5300PEs cut OI of 6L - Remember now the premium is significantly reduced and the risk is for new 5300PE writers if market gaps down.
On world market/US treasuries ..
1. S&P failing to decisively conquer 1083 is also bad.
2. Yields on US Treasury Bonds are firmly under 3 now - which indicates flight to safety - selling risky assets - metals, commodities & stocks (developed and emerging markets)
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