Options data for 23rd Jul (EOD)

Notable points from Friday's Options action:

1. 5500 is still tough to achieve this expiry - 1.23Cr OI is decently big

2. 5400 puts adding 10L+ and 5400 Call covering - strengthens the case for 5400+ expiry

Nifty Futures-

1. OI:

July: 3.03Cr OI down 4.2%

August: 65L OI up 33%

2. Rollovers:

13.4L shares cut from July

16.5L shares added to August -- Rollovers on the higher side

Comparison with June - the Friday before expiry we had Total OI of 3.3Cr whereas now the OI is almost 3.7Cr - almost 13% bigger now!

BankNifty Futures-

1. OI

July: 23L OI down 0.17%

August: 4.7L OI up 36%

2. Rollovers:

0.17L shares cut from July

1.25L shares added to August - Definitely heavy rollovers!

Comparison with June - the Friday before expiry we had total OI (June+July) of 21L whereas now the total OI of 28L (July+August)

From http://oitracker.blogspot.com/

1. HIGH OPEN INTEREST AT MARKET TOPS IS A BEARISH SIGNAL IF THE PRICE DROP IS SUDDEN, SINCE THIS WILL FORCE MANY 'WEAK' LONGS TO LIQUIDATE. OCCASIONALLY, SUCH CONDITIONS SET OFF A SELF-FEEDING, DOWNWARD SPIRAL.
2. AN UNUSUALLY HIGH OR RECORD OPEN INTEREST IN A BULL MARKET IS A DANGER SIGNAL. WHEN A RISING TREND OF OPEN INTEREST BEGINS TO REVERSE, EXPECT A BEAR TREND TO GET UNDERWAY.