Today banknifty closed up by 18o points @ 15662 and the highest change in OI is observed for 15500 pe. What does this indicate.?


The change in OI was positiveā€¦


This means while Bank Nifty has gone up today, large number of traders expect a down move in Bank Nifty, hence they bought 15,500 Put Options.

Of course whether the traders are right or wrong in their expectation is a million dollar question :slight_smile:


Highest OI got added at 15500PE with the (Decrease in Premium price) and (Increase in the Underlying Future price). So, I believe 15500PE options are being written(sold) and 15500 strike is becoming base for the BankNifty with next move to 16000.

Similar base is happening at 7800 strike of NIFTY!

((NIFTY -> 8000) & (BANKNIFTY -> 16000) & (S&P 500 ->2000)) == (ZerodhaCROWD(ZC) INDEX -> 8000)

Anybody want to betĀ ( ZCĀ @ 8000 for tomorrow) Ā OR (ZCĀ @ 8000 for Next week Expiry)

Just Kidding!

1 Like