What Reliance Industries option chain indicates ahead of earning?

On Thursday, the stock of Reliance Industries has opened with an upside gap and thereafter, marked the high of Rs 2,120. In the second half of the trading session, the stock fell by 39.50 points or 1.86 per cent. In the end, the stock ended the session with a gain of 2.18 per cent.   

January series stock future of Reliance industries Limited saw short covering on Thursday as the open interest fell by 9.21 per cent. The short covering happens when the price is going up, but the open interest is falling. January month’s current open interest is 2,83,55,500.  

For January expiry, the total call open interest is 1.32,50,000 and the put open interest is 81,99,500. Hence, the open interest wise put-call ratio (PCR) is at 0.61 for January expiry.   

For January series, the highest call open interest is at 2,100 strikes with 21,66,000 OI, followed by 2,200 strikes with 20,63,000. On the put side, the highest put open interest is 2,000 strikes with 10,90,250 OI. Today, the highest addition in the open interest was seen at 2,120 calls of January expiry with 3,61,000 OI while on the put side, 2,100 puts have seen the highest addition in the open interest with 3,50,000 OI.   

The current derivative data suggest that the Max Pain is at 2,000 for the monthly expiry. The options data indicates that the stock is likely to trade in an immediate range of Rs 2,100 to Rs 2,000 in the coming session.  

Technically, the zone of Rs 2,165-Rs 2,170 is likely to act as a major resistance for the stock as 61.8 per cent retracement level of its prior downward move (Rs 2,369.35-Rs 1,835.10) placed in this zone. On the downside, the level of Rs 2,000 will act as crucial support for the stock.