ANALYZING THE OPEN INTEREST IS HELPFUL IN RANGE BOUND MARKETS TO SEE WHERE THE SMART MONEY IS MOVING.THE ABOVE TABLE GIVES FOLLOWING OBSERVATIONS:
1.TODAY 5500CE HAS ADDED MAX. O.I. & THIS IS ALSO THE STRIKE WITH MAX. O.I.
2. 5300 PE O.I HAS REDUCED TODAY.
3. 5400 PE & CE BOTH HAVE ADDED O.I. TODAY
4.PUT/CALL RATIO HAS COME DOWN FROM 1.34 TO 0.96 IN THIS RANGEBOUND MKT.
CONCLUSIONS:1.RANGE REMAINS 5500-5300
2.NIFTY MAY NOT TOUCH 5500 DURING THIS SERIES.
3.REDUCTION OF 5300 PE O.I. AND PUT/CALL RATIO BELOW 1.0 ARE BEARISH SIGNS
4.5400 PE & CE O.I. CHANGE IS TO BE WATCHED FOR NEXT TWO DAYS TO DETERMINE A SHIFT IN MAX. PAIN AREA.
PLAN YOUR STRATEGY ACCORDINGLY,THERE IS MONEY TO BE MADE BY PLAYING IN OPTIONS.
THE TUG OF WAR CONTINUES-----------
