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There is strong shift in OI Sentiment as there is a huge Open interest build up in 5200 calls which shows that 5200 calls are written. 5200 CE OI is higher when compared to 5000PE,4900 PE,4800PE. Nifty also closes below 5 day EMA(5118) and Weekly 5 EMA High(5131). Looks Buying will only come if nifty closes above 5131 on EOD Basis.
23 comments
I think sentiment has been converted from bullish to bearish. If you go through the entire 2009 weekly chart, then you will be noticed that market is resting at overbought zone. Even few TA experts are telling that in Jan 2010, we may face some big correction. Please give your views.
so many calls written we also have buyers,so when one says calls are written,it also means calls are bought and because there was a fall in price it is implied bearish?is this understanding correct
@Shaq
Read this article to get a more clear picture
http://www.investopedia.com/articles/optioninvestor/04/060904.asp?viewed=1
after reading the above mentioned article....i am still confused that how increase in OI of 5200 calls implies that 5200 calls were written? being a novice..kindly excuse.
thanks
cm
One Possible reason is that option writers might changed their mindset from writing 5000 PE to 5200 CE. May be they could have a strong belief of expiry closing below 5200... Which keeps then in writing 5200 CE.... Means If they left the positions uncovered and during expiry if nifty closes below 5200 then possibly they would get the entire premium of 5200 CE. Which makes them to build higher open interest in 5200 CE region
hi
in decemberwe can expect nifty in range between 5050 5180 because if its go above 5200 there is loss for option seller and if it goes below 5000 than there is also loss so its in tight range and on friday there is trade of 2lac qty in 4700 put and 5200 calls in january at same time so its also indicate range for same in january . if i m wrong plz tell
please suggest me any eod software uded for Technical Analysis
JUST REMEMBER THIS RALLY IS DUE TO DOLLER WEAKNESS, THE DOLLER INDEX REVERSED ON FRIDAY BIGTIME AND RESULTED IN FALL IN ALL COMODITIES, LONGER TERM MACD IS AT PEAK WHICH WAS AT 21K SO I DONT THINK WE WILL HAVE TO WAIT TILL JAN 10 TO SEE THE FALL
ASH.SAO AT GMAIL
@Jignesh I would recommed Amibroker. Just go for it...
Jignesh... We cant decided the move just alone seeing the Open Interest charts alone. OI just reflect the sentiment at that instant... We cant expect to continue forever......
thanx for your reply but on friday u mention that 5200 call sold how can u decide after seeing oi he has sold i know from tuesday market came down so might be ur right because oi is note decrese its stil there so plz tell me your view and help me for learn oi in deeply and if possible daily give your view on OI so i will follow your view
thanks
plz help me to learn reading oi
@Jignes will learn with respect to time
but u r giving response after a week how can i learn i know the volatility of oprion also indicate the buying or selling of the options but Hedgers sold slowley in the market so u cant catch him
plz reply early
bye tc
can u tell me something about u?
as u mention on 13 DEC expiry closing below 5200 now its true
@Jignesh... Dont be angry on me.
Stock markets and Bloggin is not my primary Job.
Iam a telecom engineer by profession.
If you wanna learn with us. Then patience is the only key.
sorry if u feel that i m angry on u, not like that my grammer is weak so u feel my language is rude sorry again.
now today i assume that calls are written in 5200 5300 5400 and puts are long 5000 & 4900.
if possible for u to give me your email id so i forward u my Open interest excel sheet.
plz give me your view and please accept me as your STUDENT.
and if any books help me to understand OI also recommend me
bye
tc
you can forward your queries to rajandran@marketcalls.in
hello sir,
How r u?
i hope u come back from your native place.
please reply my mail i had send on 15 jan if possible 4 u and also tell me your view on OI for january month.
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