Nifty Open Interest Analysis

[reachjj]

Date : 2.3.2013

Continuing from where left off... two more theories
- Watch closely whenever OI in a strike crosses 70L.. it indicates strength in that trend... eg .. if 5800CE crosses 70L... we can rest assured that the short term down trend is intact with top indicated at 5800
- The previous indication can change if there is a sudden drop by more than 12% in that particular strike price

Please feel free to suggest patterns that you would see that could give clues to upcoming levels...FII's share is almost a quarter percentage in the Futures trade... maybe we could glean something from their activity...

You said, if the OI goes above 70Lakh, the current trend has strength.... But in you example you said, if the 5800 CE crosses 70L, then we can expect short term down trend..... is it not conflicting?

 

[Option.Trader]

You said, if the OI goes above 70Lakh, the current trend has strength.... But in you example you said, if the 5800 CE crosses 70L, then we can expect short term down trend..... is it not conflicting?

You have to remember that Call writers are bearish...so if OI is heavily skewed towards 5800CE that means the mkt participants have formed the view that 5800 is going to be near term top.. just think it in opp terms

 

[Option.Trader]

4.3.2013

5630 looks to be intermediate bottom from the Options data
Need to see if it holds 5650 once again...

 

[mangup]

Hi option trader,
Is it possible to share the excel file that u use to monitor nifty option?

 

[moody_man]

Option Trader,

Can you also please post a snapshot with the latest data?

thanks

 

[chemmanian]

Thank you option.trader for this nice thread!!! Waiting for your today's analysis of OI. Seems both 5700 PE and 6000 CE are heavily written, meaning 5700 will act as a strong support.

 

[Option.Trader]

Date: 5.3.2013

As said on Monday, 5700 PE had reached 70 L.. so downturn was limited.. it gave a smart pullback.. one way of playing can be to write 5700 PE until an unwinding of contracts... this would help in capturing time value decay of options

For today, no real longs were added looking at both FII and overall F&O... million $ question is whether global cues will push all shorts to come out of system.. in that case it will be a rocket journey to 5900...

 

[Option.Trader]

Hi option trader,
Is it possible to share the excel file that u use to monitor nifty option?

I can... only issue is as of now I take data from two sources and merge to get the report out... took from Columbus thread the expiry range and then added the interpretation to it... would be nice if someone is willing to integrate both through VB to automatically pull the data... if someone is willing to do it , i'll be more than glad to supply both excel files

 

[Option.Trader]

Watch Closely the 5800 PE..slowly moving towards 70L with 12 L contracts being added already today... together with unwinding of 5500,5600,5700CE.. looks all set for a short term bull run

 

[SexyTrader]

Watch Closely the 5800 PE..slowly moving towards 70L with 12 L contracts being added already today... together with unwinding of 5500,5600,5700CE.. looks all set for a short term bull run

With the current news coming in, the mood will turn bearish again!!

Hence I bought 5600 PE now coz its available dirt-cheap right now....and a sure-shot winner :thumb: