Nifty Open Interest Analysis

[Option.Trader]

@OT

It is about time this thread got an upgrade.

Could you start posting Option Spread Trades. This is a very comfortable form of trading but attracts least attention due to the technical knowledge it requires.

Yep.. i was keen on this... only issue is to track this in real time which is impossible for me... would love if anyone could take a look at this and take it forward... we could add to the thread at end of day...

 

[R M]

Could you post a snapshot of the image... i'm not able to view any images from the link mentioned above at this time

@Options Trader

Here are the images:

I have plotted FII Net Open Interest (longs minus shorts) and Daily change in OI for Index Futures, Index CE and Index PE to have more clarity on what the big brother is doing.

regards.
rm

 

[shivan]

@Options Trader

Here are the images:

I have plotted FII Net Open Interest (longs minus shorts) and Daily change in OI for Index Futures, Index CE and Index PE to have more clarity on what the big brother is doing.

regards.
rm

how to read volumes along with CE & PE OI in these charts.

 

[sridhar]

Even I am finding these charts confusing. OI has to be a positive figure - right?

 

[sridhar]

Trend is still strong and down. The bears are only squaring off. No one would dare to take longs. So, short may come even lower than 5550, near HOD. So, am looking for setups.

What time frame do you use to keep track of the NF movements?

 

[R M]

how to read volumes along with CE & PE OI in these charts.

Left side scale and line plot is for net outstanding contracts. Right side scale and bar plot is for net daily contracts. Plus is used for long contracts and minus for short contracts. If the plot is in negative that means the net position is short.

regards.
rm

 

[R M]

Even I am finding these charts confusing. OI has to be a positive figure - right?

@Sridhar

Participantwise OI data has both short side contracts and long side contracts. Net position is shown as negative if short contracts are more than long contracts. It is just like if you are holding 10 lots short and 5 lots long, you are overall 5 lots short.

regards.
rm

 

[R M]

If I am interpreting your chart correctly than Nifty shorts have drastically been cut down yesterday. Is this right?

@bobomonkey
not at all, there was no fresh addition to shorts yesterday, net outstanding shorts remained at almost the same level. And technically these are index shorts though Maximum FII volume is in Nifty index.

regards.
rm

 

[Option.Trader]

Date: 10.4.2013

26 L shares got added to OI between 5300-5500PE, with almost 21% increase in 5400PE indicating strong support at 5400 coming in.

Only 5.3 L got unwound in 5400-5700Ce strike indicating no strong conviction yet on pull back.

Interesting series of charts... Have a suggestion... if you could plot on 2 axis the following..
1) On primary axis, FII Net Change in OI in Futures and Options
2) On Secondary axis Nifty Levels...

Interesting to see if there is some inflection point over the series that indicates a strong trend coming in based on previous days data.. i.e if Net change in OI was X and Price was up down by Y, then the chances of Nifty going up/down increases by z%

Overall no real long positions yet seen in Index

 

[spkreddy]

Dear OT,
as you mentioned in Chart..FII NET OI increased by 23002 and nifty future was up in this case FII take long positions...but you mentioned FII covered Shorts(short coverting means price up OI down)

please clarify