Nifty Open Interest Analysis

[summasumma]

as per current time data,
change in OI in 5700&5800 CALL is around +3 million... Bears adding heavily
change in OI in 5600&5500 put change in OI is -0.2 million... Bulls unwinding

Looks like market is heading down...

 

[bkb]

as per current time data,
change in OI in 5700&5800 CALL is around +3 million... Bears adding heavily
change in OI in 5600&5500 put change in OI is -0.2 million... Bulls unwinding

Looks like market is heading down...

Good fall in NIFTY in last 20 odd minutes. Where NIFTY is heading?

 

[summasumma]

Good fall in NIFTY in last 20 odd minutes. Where NIFTY is heading?

Yes approx 30 points downmove...

as per current time data,
change in OI in 5700&5800 CALL is around +4 million... so OI UP by 1 million in less than last 30mins...

Does it mean more downside left? lets wait and watch...

 

[option writer]

see nifty level ..
if nifty goes below 5670 target is 5630 and dont go below 5600 but try to make below 5600 due to selling option lots at higher value by FIIS AND DIIS
and sometimes (same in day) after comes above 5600..
but be care present market is volatile due to Q3 result of major stocks..
current month expiry maybe 5650 5750

need more http://www.4shared.com/office/dAbHfgEa/october_nse_now_2.html

happy trading..

 

[Option.Trader]

Am starting to get the gist. Please correct me if i am wrong -

1. Call writers are bears & Put writers are bulls.
2. The whole idea of the writers is to be in strike prices which will be out of money & hence expire worthless.
3. Where maximum writing takes place in either call or put is like an opinion poll of where the bears or bulls expect spot to expire Out Of Money. (Considering premium received etc.)
4. The expected direction of movement can be gauged by the relative open interest quantity of relative max. positions level. (ie. if max bears oi is 10 & bulls oi is 20 bulls will prevail.)
5. Situation is dynamic & rate of change of OI is important.

Many thanks.

Now for 1 clarification. - You mention that for decisive break above 5800 5800CE OI needs to increase. Would it not be 5800 PE?

Thanks again!!

Kudos... you have got more than the gist of it... absolutely right on every count.
On the clarification, you are right.. it must have been a typo from my side :thumb:

 

[Option.Trader]

Guys Need help on creating a poll.
The FAQ guidelines say to check box at end of post to put up a poll. I'm not able to see such a checkbox. My browser is google chrome, so does it not support poll?

 

[timepass]

You are right !! The "Post a poll" option is missing. Must be the admin doing some weekend tweaks. But must tell the mods/admin about it. Reporting this post.

 

[Traderji]

The "Post Poll" option is only displayed when starting a NEW THREAD.

 

[Option.Trader]

The "Post Poll" option is only displayed when starting a NEW THREAD.

Does this mean I wouldnt be able to conduct a poll for a thread created by me after a period of time?

 

[Option.Trader]

Date : 19-10-12

We had cautioned yesterday to trade only above 5720. A lot of heartburn would have been avoided.
Today Bulls were caught with their pants down. Unwinding was seen in 5600/5700/5800 PE. I have added another tracking feature, CE&PE OI for the day and you can see there was heavy unwinding of puts
One saving grace is that expiry zone still indicates 5700
Watch out for 5600CE OI. If this builds up to above 60L, then we are in for a roller coaster ride

Thought for the day : Emotions lead to loose motions