Nifty Change in OI

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

For suppose Nifty is currently trading at 11520 

Situation 1: IF the above chart shows that there is increase in Open interest at 11500 of Calls It suggests that the 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 11500 of Puts It suggests that the 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 700000 So Consider Only if the above chart indicates a change in OI of at least 700000 contracts at a particular Strike.