Banknifty Change in OI

The Change in Open Interest Chart helps us to guess the Intraday Trend as follows

For suppose Bank Nifty is currently trading at 30520 

Situation 1: IF the above chart shows that there is increase in Open interest at 30500 of Calls It suggests that the bank nifty is trading at premium levels and it is a good opportunity to short the market.(sell on Rise)


Situation 1: Similarly IF the above chart shows that there is increase in Open interest at 30500 of Puts It suggests that the bank nifty is trading at attractive levels and it is a good opportunity to Long the market.(Buy on Dips)

Important Note : This Chart changes in real time and many a times the Change in OI will be completely reversed i.e Squared off  typically if the number of Contracts is less than 300000 So Consider Only if the above chart indicates a change in OI of at least 300000 contracts at a particular Strike.