Nifty Index Options – Open Interest Analysis – 04-03-2016
Nifty Index Options – Open Interest Analysis End of the Day chart is computed on the basis of Nifty Active Index Option chain – Open Interest Addition and Liquidation in the Call and Put options at various Strike Prices. The OI trend is just an honest effort to estimate the trend of Nifty 50 on the basis of Long and shorts addition and unwinding, Long and short covering. Again we repeat that its just an effort to estimate the trend and not an exact picture of the trend so just looking at OI trend does not necessarily mean that the trend is bullish or bearish.
The Total Call OI, Change in Call OI, Total Put OI and Change in Put OI is the Open Interest built up and change in Open Interest across all the Strike prices of Nifty 50 Index options and not the Strike prices analysed above in the chart.
The PCR OI is the Put to Call ratio of the Total Put and Call Open Interest across all Strike prices of Nifty 50 Index options.
The PCR VOL is the Put to Call ratio of the Volume traded for the trading day of the Total Put and Call Open Interest across all Strike prices of Nifty 50 Index options.
SMR – Smart Money Ratio
Range As per OI and the Range as per Vix are calculated by adding & subtracting the current PCR and the average Volatility over a year compared to the day’s volatility.