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Open Interest Study

Open interest refers to the total number of futures or options contracts that have not been closed out at the end of a trading day and provides information about market trends. Increasing open interest along with a rise in price confirms an upward trend, while increasing open interest and falling prices confirms a downward trend. The document discusses how analyzing changes in open interest in specific call and put options can provide insights into likely future movements in the underlying asset price.

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1K views

Open Interest Study

Open interest refers to the total number of futures or options contracts that have not been closed out at the end of a trading day and provides information about market trends. Increasing open interest along with a rise in price confirms an upward trend, while increasing open interest and falling prices confirms a downward trend. The document discusses how analyzing changes in open interest in specific call and put options can provide insights into likely future movements in the underlying asset price.

Uploaded by

swaroopr8
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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How to predict

WITH THE HELP OF OPEN INTEREST

Vince K D
What is Open Interest
 Open Interest is the total number of outstanding contracts
that are held by market participants at the end of the day. Or
It can also be defined as the total number of futures contracts
or option contracts that have not yet been squared off or
expired.
 To determine the total open interest for any given market we
need only to know the totals from one side or the other,
buyers or sellers, not the sum of both.
 The open interest position that is reported each day
represents the increase or decrease in the number of contracts
for that day, and it is shown as a positive or negative number.
Open interest gives you key info
Open interest applies primarily to the futures market. We can
understand or confirm trends and trend reversals for futures and
options contracts.
a) Increasing open interest means that new money is flowing into
the market, An increase in open interest along with an increase
in price is said to confirm an upward trend.
b) an increase in open interest along with a decrease in price
confirms a downward trend.
c) An increase or decrease in prices while open interest remains
flat or declining may indicate a possible trend reversal.
Increase open interest in 8300 put denotes
writing in the same and nifty likely to move to
8400
Increase open interest in 8500 call denotes
writing in the same and nifty likely to move
8500 to 8400
Increase open interest in 8300 & 8500 denotes
writing in the same and nifty likely to move to
8400
Sudden covering in 8600 calls that means
Market will move to 8500->>>8600
Where ! we will get open interest data
chart of nifty ?
• From Nse site we can stretch data to excel
sheet…

• just search in Google you will get many sites


which u want..

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contact
Vince K D

Mob 08739840050

[email protected]

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