Open Interest Analysis

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Nifty 10577 (+100) BankNifty 25921(+251)

Nifty futures open Interest declined by -3.7% indicating Short covering as markets gained after continuous fall. So far in February contract there had been no substantial build up of positions on either side as traders fear overnight movement in US markets that may result in gap up or gap down in the morning session. Technically, Nifty(spot) closed marginally above its 50day moving average of 10560. If manages to hold above 10560 then it can move towards 10730 otherwise it can once again test its 100day moving average of 10370.

OI in BankNifty declined by -2.9% indicating unwinding of Short positions. Technically, BankNifty(spot) if holds above 25600 then it can move towards 26200-26300. On the downside, a break below 25600 would take it towards 25300-25200 levels.

 

[Jayakumar.int]

Nifty 10455 (-122) BankNifty 25464 (-457)

Nifty futures open Interest increased by +7.3% indicating fresh Long build up for the first time in February contract. In the last session even though Nifty settled in negative its intraday trend was positive, so addition of OI can be termed as Longs. Technically, Nifty(spot) on a stay above 10400 may bounce back towards 10600-10640 levels.

OI in BankNifty declined by -3.2% as Shorts got wind up at lower levels. Technically, BankNifty(spot) closed above its crucial 100day moving average of 25390, if holds above then it can move towards 25800-25900 levels.

 

[Jayakumar.int]

Nifty 10540(+85) BankNifty 25702(+238)

Nifty futures open Interest increased by +5.5% as Fresh longs are added. Technically, Nifty(spot) would stay with positive bias above 10400 levels with resistance at 10600-10640. IIP data for December 2017 that was above market expectation would keep the market sentiment positive.

OI in BankNifty stayed flat after Shorts got windup in the previous sessions. WPI Inflation that’s expected in today’s session may influence movement in BankNifty. Technically, it may stay with positive bias above 25350 with resistance at 25900-26000.

 

[Jayakumar.int]

Nifty 10501(-39) BankNifty 25341(-360)

Nifty futures open Interest stayed flat amidst volatility and weakness in Banking stocks. As longs are still holding their positions, Nifty(spot) can gain strength if moves above 10550. On the downside, weakness in Bank stocks can drag Nifty towards 10430-10390 levels.

OI in BankNifty increased by a huge +13.3% indicating fresh Short positions as detection of fraud in PNB and RBI’s new debt resolution framework dragged key public sector banks. Technically, BankNifty(spot) would stay weak below 25650 may head towards 24950-24850 levels.

 

[Jayakumar.int]

Nifty 10546 (+45) BankNifty 25424(+83)

Nifty futures open Interest declined by -1.8% indicating unwinding of long positions as Nifty failed to hold at higher levels amidst volatility. Technically, Nifty(spot) seems to be caught in the range of 10450-10600 in the last few sessions, may stay volatile as weakness in banking stocks continue to drag Nifty.

OI in BankNifty stayed flat indicating Shorts continue to hold on to their positions as the fraud in PNB gets bigger. Technically, BankNifty(spot) would stay weak below 25650 levels, a subsequent stay would drag it towards 24950-24850.

 

[Jayakumar.int]

Nifty 10451(-93) BankNifty 25164(-260)

Nifty futures open Interest remained flat without much change in a volatile session. Technically, Nifty(spot) would stay in a range of 10390-10600, a break below 10390 would drag it towards 10300 levels.

OI in BankNifty increased by +4.6% indicating addition for short positions. Technically, BankNifty spot would stay weak below 25550 may head towards 24900-24850 levels.

 

[Jayakumar.int]

Nifty 10378(-74) BankNifty 25059(-105)

Nifty futures open Interest (three months combined) increased marginally by +1.5% indicating addition of marginal long positions as Nifty bounced back sharply from 10300 levels. Technically, Nifty(spot) can bounce back towards 10450 if holds above 10330.

OI in BankNifty declined by -5% indicating winding up of short positions as it bounced from 24800 level. Technically, BankNifty(spot) may stay in the range of 24800-25350, it has to break and hold below 24800 for a further fall.

 

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Nifty 10360(-18) BankNifty 24874(-184)

Nifty futures open Interest(three months combined) increased by +4.5% indicating rollover of Short positions to March contract. Technically, Nifty(spot) closed below its 100day moving average of 10399, a subsequent stay below this level may drag Nifty towards 10280 and 10230.

OI in BankNifty went up by +11% as Shorts are being rolled over to next month contract. Technically, BankNifty(spot) stays weak below 25250 levels, may head towards 24600 levels.

 

[Jayakumar.int]

Nifty 10383(-15) BankNifty 24955(-19)

Nifty futures open Interest (three months combined) went up by +9.6% as Shorts are rolled over, there is possibility that some of the contract are allowed to expire. It may take few more sessions for OI to settled down. Technically, Nifty(spot) has to break the trading range of 10330-10430 for any significant movement.

OI in BankNifty stayed flat on expiry amidst lower than expected volatility. Technically, BankNifty(spot) may stay in the range of 24800-25200 levels.

 

[Jayakumar.int]

Nifty 10491 (+108) BankNifty 25303 (+347)

Nifty futures open Interest increased by +5.2% on the first day of March contract indicating addition of long position. Nifty(spot) broke the trading range of 10330-10430 at which it had stayed for the last few sessions on the upside indicating a bounce back towards 10600-10650 levels.

OI in BankNifty was up by +4.7% indicating addition of fresh long position. BankNifty(spot) has in line with Nifty bounced from its lows may move towards its resistance of 25650 levels.