Open interest is the best tool to tell which direction traders are speculating in market, it may be stock future or index future, applicable in both. First of all we will discuss four golden rules about open interest which every F&O trader should follow strictly: If Nifty / Stock trades up and open interest up then long positions were added. If Nifty / Stock trades down and open interest up ... [Continue Reading]
Buy Nifty 4700 Put Options, Open Interest Hints Sharp Fall in Nifty Future
Nifty 4700 put options have added long positions, open interest data suggests. Also Nifty future has a resistance level of 4700, so whenever we see nifty future near 4700 traders are advised to enter short positions on nifty or just buy nifty 4700 put options in small quantities, as options are used to limit the amount of risk to premium paid. We are of the view that many of the front line stocks ... [Continue Reading]
Nifty Future will Change its Trend only if it closes Above 5400 level
Nifty future have rallied from 4550 to 5350 level this 800 point bounce is still of doubt for us, on charts nifty future will change its trend only on closing above 5400 for at least 2 days. Then only we will look for buying opportunities, as this down trend will change into uptrend on breaking and closing above 5400 level. We have also seen a trend line on weekly chart acting as resistance, so ... [Continue Reading]
Understand open interest in nifty future, why it is so important
Open interest is the total number of long and short positions open in a particular contract; it is major indicator for professional traders trading in high volume. Nifty future being most traded future contract, it is very important for nifty future traders to know the basics of open interest. Here I will explain you with the help of an example. Trader P buys 1 lot nifty, trader Q sells 1 lot ... [Continue Reading]
Why Nifty options open interest data is important for trading nifty future
Open interest shows us total number of position opened in the instrument, now here we are talking about open interest of nifty options. Nifty options are widely traded on NSE also it is most active option contract, nifty options open interest data is extremely important while trading nifty future. Here is complete explanation; Nifty option open interest data can give you an idea of range in short ... [Continue Reading]