Nifty Change in Open Interest – Explained Meaning of “Change in Open Interest”
Hello friends lets understand Open interest How to interpret “Change in Open Interest”? Nifty Open Interest” or “Nifty Change in Open Interest” are two very reliable indicators to identify the ST direction of the market. When the smart money is bullish, they usually start writing Puts. And when the smart money is bearish, they prefer writing calls. Change in OI” can also be used to identify approximate support and resistance levels. If the OI has increased for 22500PE the most then it will imply that the option writers consider 22500 level as a strong support. On the other hand, if the highest increase in OI is for 22500CE, then it implies that option writers consider the 22500 level as a strong resistance level. The Option writers are generally the market participants with deeper pockets compared to option buyers. For more accuracy in predicting the ST direction, this chart should be read with “Nifty Options Traded Volume” and If the OI increase is low but the volumes are heavily