How to Read Open Interest

cson

New Member
#1
I am a new Stock trading, and just reading and improving my knowledge. This site has many good posts, that one must read.

Anyways, I have a question.

I have heard by reading open interest, we can identify where the particular stock is heading. Down or Up??

1. Is this true?
2. If, Yes, How accurate and reliable is open interest reading?
2.a Does it apply only to FnO contract?
2.a Does it have any impact on cash segment?
3. Can any one give 2-3 example from current Market?
4. Where Can i get latest and updated data of Open interest?

I hope you guys will help.
Thanks,
c
 

sumeetsj

Well-Known Member
#7
It cannot be taken as the only tool for analyzing. PCR also exists, so do a lot of other things.
OI should be secondary.
Once you have decided on a particular position on a stock then at last before entering you check the OI for the exact story.
It can be deceptive sometimes if looked at in isolation
 

rajeabc

Well-Known Member
#8
It cannot be taken as the only tool for analyzing. PCR also exists, so do a lot of other things.
OI should be secondary.
Once you have decided on a particular position on a stock then at last before entering you check the OI for the exact story.
It can be deceptive sometimes if looked at in isolation
Looks like only we two are active today :)

For Intraday/(1-2 days also) trades.. OI is very critical data to watch for..
 

cson

New Member
#9
Looks like only we two are active today :)

For Intraday/(1-2 days also) trades.. OI is very critical data to watch for..
Yes I Agree, Its useful in Intraday

I am very new to this trading world, but doing my research as and when I get time.

I have tested OI in intraday (using share bazar game simulator), and 90% of my trades are profitable, still testing...


But I want to get more in-depth knowledge about this, and I am sure there are lots of experts here, who can guide me and others.


Sumeet: Can you tell me more about "PCR" ... Sorry I am new and learning.
 

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