Table of Contents
What is open interest in Bank Nifty?
Definition: Open interest is the total number of outstanding contracts that are held by market participants at the end of each day. Open interest measures the total level of activity into the futures market. Therefore, open interest provides a lead indication of an impending change of trend.
How do you read open interest?
Open interest is the total number of outstanding derivative contracts, such as options or futures that have not been settled. Open interest equals the total number of bought or sold contracts, not the total of both added together. Open interest is commonly associated with the futures and options markets.
What is nifty open interest and why is it important?
This is significant because the market is indicating that it is starting to dampen its bullish outlook. Regarding Nifty Open Interest, it provides good support and resistance levels for the series. Traders usually look for Nifty Open interest highest OI strikes. These strikes are important to determine support and resistance.
How to determine support and resistance for Bank NIFTY?
Open Interest to determine Support and Resistance for Bank Nifty: Open Interest data can give very useful clues to determine Support and Resistance. e.g. if 11000PE has highest open interest, traders perceive it as important support for the current expiry.
What do options traders look for in NIFTY open interest?
Traders usually look for Nifty Open interest highest OI strikes. These strikes are important to determine support and resistance. Why Option Writers? Because Option Writers are generally market players with deeper pockets compared to option buyers.
How to use Nifty option chain table to determine support and resistance?
Using Nifty Option Chain table, the Open Interest data can give very useful clues to determine Support and Resistance. e.g. if 6000PE has the highest open interest, traders perceive it as important support for the current expiry.
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