The Open Interest Chart shown above needs a different Interpretation as the Chart Shows the Open Interest of Nifty Option Contracts , It is because writers of the options are considered to be the Market Makers Hence If particular strike has more Open Interest then Market will defend / Resist at that Particular strike.
For Example : If there is heavy calls open (blue line) Interest at 11600 strike this means that Market makers are willing to sell calls to general public and we should interpret this as a resistance level because if nifty goes above 11600 it will result in a loss to the writers of the options.
Similarly If there is heavy Puts open (red line) Interest at 11600 strike this means that Market makers are willing to sell puts to general public and we should interpret this as a support level because if nifty goes below 11600 it will result in a loss to the writers of the options.
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