If on Index expiry day, after 2 PM, the Highest Call OI and the Highest Put OI are the same strike price, what does it likely indicate? Kindly guide.
If the OI is huge like 30-40 million open contracts on both call and put side then it means there is a huge tussle between both of them. In absence of any significant trigger for the market to either go up or down most probably expiry will happen at the same strike price. On the other hand if the number of open contracts is not huge then most probably one of the sides will win taking the market up or down with short covering or long unwinding respectively…
It happened with Nifty and Midcap expiry last week. Thanks for explaining.
If both are equal then it may indicate signs of flat opening to sideways movement. & there wud not me significant change in indices