Direction of markets in near term is still a puzzle, yesterday what I have noticed on monthly chart is total open interest of Nifty future was at lowest level since 2005. Uncertainty that has been in market for long time is responsible for low open interest, low open interest shows that participants don't find markets attractive in near term hence less participation. Next month i.e May month ... [Continue Reading]
Nifty future analysis with volume and open interest
A new analysis for Trading Nifty Future, traders must know what is relation between open interest and trading volume. Today I will explain this with a tutorial, now for open interest you can refer to open interest article. Once you are clear with open interest we will continue with its relation to trading volume. How is volume important? Now according to Dow Theory, when ever markets start to ... [Continue Reading]
How to Use Options Open Interest Data to Find Trading Range of Nifty Future
Many traders told me that they find it difficult to judge the range of nifty future for short term, so today I am here with an article that will teach you how to find that exact top and bottom range for complete F&O series. First of all you should know what open interest is in Future and Option. I will explain this with an example: Trader A sells 1 lot nifty, trader B buys 1 lot nifty - Total ... [Continue Reading]
Nifty Put Options has Highest Open Interest, More Buying in Nifty Future Seen
Nifty F&O are creating excitement in my analysis I have closely analyzed nifty option contracts of current expiry series, found that open interest that is build in put options was some extraordinary behavior of traders. Most of put writing was seen in 5300 put option, which is our predicted bottom for current F&O series. Fact is most of option contracts expire worthless (about 90%), ... [Continue Reading]
Find Short Term Range of any Stock with Stock Options Open Interest Data
Here we are talking about support resistance range which can be easily found with the help of stock options open interest, but there is one limitation for this strategy, it is applicable only for those stocks who’s option contracts are very liquid, like Reliance, State bank of India, ICICI Bank, Tata Steel, Chambal fertilizer, NTPC, Infosys, TCS, JP Associate, Unitech, Suzlon, IDFC, Larsen & ... [Continue Reading]