Hi All,
As we all know open interest in futures give very good indication of the short term trend of a particular contract. As i know :
1. future price up and OI build up then there is long build up.
2. future price up and OI down then there is unwinding and price may go down ?
3. future price down and OI down then short build up.
4. future price down and OI up then unwinding.
i know very little about this concept. As my underdtanding goes OI and COC(Cost of Carry) has significant impact on trend of underlying contract. Today for example HDIl at 1 O clock in NSE site it was shoeing that OI down by 19%. After some time i saw share value also coming down .. can we interpret this situation as longs booking profit ??
Please all seniours throw some light in to this topic.
Cheers,
Nagendra
As we all know open interest in futures give very good indication of the short term trend of a particular contract. As i know :
1. future price up and OI build up then there is long build up.
2. future price up and OI down then there is unwinding and price may go down ?
3. future price down and OI down then short build up.
4. future price down and OI up then unwinding.
i know very little about this concept. As my underdtanding goes OI and COC(Cost of Carry) has significant impact on trend of underlying contract. Today for example HDIl at 1 O clock in NSE site it was shoeing that OI down by 19%. After some time i saw share value also coming down .. can we interpret this situation as longs booking profit ??
Please all seniours throw some light in to this topic.
Cheers,
Nagendra