Renu (reply for question posted in other thread), since this is the nifty thread:
my suggestion, to start with, just keep a window open , suppose nifty is 4300/4400, add this months all calls & puts from 3800 to 5000 & watch, suddenly you will notice when direction is going to change few hours b4 that, more than usually buy / sell orders will start trickling in, ignore the small orders or 200/500, watch the direction of big trades... 5000 / 10000 single trade majority, after few days you will start getting the drift, note the direction, if you start getting right direction right few times, then you can trade on your reading... for example you see big trade after trade, calls are being sold & puts are being bought, the direction to come will be down... & vice versa, watch selling of options more cause retail public usually buy the, the operators are the one who sell....
as the month nears last week, shift the options to near month as this months options will be going thru profit booking not genuine trades... hope it helps...
Also note the reason I watch the options close is cause FII's have suddenly since last few months got the fascination to trade options more, if you see their O/I is 25% more atleast in options than Nifty futures... & to explain their move is simple, if the mob see's daily FII buy sell in futures they can judge whether they are buying more or selling more, but in options, the net figure tells you nothing cause say if they sold option but sold heavy puts they are bullish but in their EOD report it will show options sold, hope you understand what I meant...
Edit: & remember after a big move wait cause they will be booking profits not showing the next direction... also I personally sort the options by O/I column so the more traded ones are their on the top....