Exploring the world of trading: Options/futures data for 9th Sep (EOD)

Summary:

1. The highlight of the week was blockbuster (70L) addition of OI at 5600PE and covering of 26L 5500CEs which makes 5500 the new base for this market.

2. 5700 is the current resistance now with 1.2Cr OI on 5700CE. But something interesting is that 28L of these options were written on last Monday in the price range of 10-18. After that OI has been flat. So call writers are in wait and watch mode.

3. The market now depends on one thing -- the 5600CE writers. Only 3.5L calls have been covered despite two strong visits to 5600+. If 25-30L calls are covered at 5600 then Nifty will sustain above 5600 and make a dash at 5700

4. PCR is now at 1.48 - so we have some room till PCR pushes to 1.8 before Nifty puts a temporary top

5700CE MP chart

Something I noticed from OI and 5700CE chart was that - there was 28L OI added on Monday (6th Sep) in the price range between 10-18. And from that day onwards there was not much OI addition. It seems to me that the buyers are defending that option as its stayed above VWAP whole of last week. Only on Friday we had some sell off but it still looks like buyers are in control. If 5700CE remains above 19 for the most part -- then those 28L, 5700CE writers will be under pressure all the time.

Nifty Futures:

SEP: 3.82Cr - OI up 3%

OCT: 28L - OI up 12%

Banknifty Futures:

27L - OI up 9.8% -- on last Wednesday's update I had mentioned that Banknifty OI reduction was a cause for concern. Well, looks like that concern is addressed now with almost 10% longs added on Friday's session. Need follow up from here.

Nifty MP weekly:

For any pullbacks weekly POC of 5587 (and also weekly VWAP) should provide first support and then it would be 5562 - Weekly VAL