You are more or less correct with your views through OI. I guess thats the basis of your stock trading. good going.
Consider another image
http://imgur.com/wOV8v4p
This is tuesday (27-may) close at around 7315. Please correct my interpretations if I am wrong. If you see it There was short buildup in 7300 CE and & 7300 PE. There was long at 7350 PE. This gives mixed signals doesnt it. Still you interpreted as short and purchased a put on wednesday evening ?
Thanks
Thanks.... I have to look into few things before I arrived at the conclusion...
1st... market was at over bought stage...
2nd... after big rally profit booking even on last day is expected
3rd... day before election result 2000 crores worth calls were sold by big boys
4th... 7400 and 7500 CE OI was kept rising
5th... even after many (6) attempts price dint not broke 7350
don't look at middle strike like 7350 7450 before last day... but you are right that mixed data will confuse...
Actually its been full ONE LAKH DAY for me... but 7250 put short with so high volumes that it forced me to conclude the closing between 7250 and 7300...
and closed with 31k+ intentionally avoided exposing the profits to wild swings...
As we discussed, looking at OI change live is bit adventures but today's scale of change was astonishing as it wildly reversed in just 4min....
yes took 7200 put by Wednesday and after 7250 PE OI drama quickly changed to 7300 puts...
hope it helps...