Nifty futures has been quite volatile for almost three months now. We are just seeing a sideways move just before a new/fresh upside move. In this type of scenario we find trading in options quite risky, so to improve decision making we have introduced a new trading style in nifty options using Open interest. Yes, by using open interest data correctly any trader can generate handsome returns.
First of all, you need to know what is open interest.
Then, using the open interest to find support and resistance.
Download nifty options live open interest excel sheet.
Check the trend using Nifty Trend Finder Tool.
The first step, you need to know the trend of nifty future. As of now, we see a short-term trend is mixed with a downside bias.
Check the news factors that may affect the trend. Example: Bihar election, Fed rate decision, Manufacturing data from China, Crude oil, and many other factors have a potential impact on the overall trend.
Now, look at the nifty options live open interest excel sheet. In this excel sheet, you will find the open interest for all the active strike price. These strike prices are for both calls as well as put options. Now, the thumb rule is if markets are volatile or sideways then you will find support and resistance very accurate. But if the market is in a trending state, then look for technical analysis charts and get the major levels. Like you can look at the options open interest data and find the potential range for nifty and also bank nifty. I prefer bank nifty as it has the weekly expiry for its F&O contract. I am also an option writer so selling on expiry with the open interest sheet can be extremely helpful.
To make real money try to keep your trading cost low, for options trading you can buy or sell @ Rs.20/- brokerage charge. Use this link to open a trading / demat account online or offline: https://upstox.com/open-account/?f=ZOJQ . Also call me on +91-9970777789 to know the latest brokerage cash back codes.
Article updated on 18.08.18.
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Gow to know Nifty direction for options trading
i want script wise open interest on live market. can you make a excel sheet for SBI and ICICIBANK.
thanks for sharing the link.
Open interest is one of the best indicator to find where the market is expecting the move. I am still learning about open interest trading strategies, as per my experience these strategies are most likely to work well in those stocks/index where open interest is very high.
For those stocks where open interest is quite low, we may need to check the sector wise trends and do additional technical analysis.
Let me know if i can be of any help here!
Open interest helps in finding market direction with high accuracy. For index options this works like a charm, can you also suggest me few stocks where I can use this strategy?
Open interest strategies still work in bank nifty options. I am still making good money from trading bank nifty options using open interest tracker.