Rajandran R Founder of Marketcalls and Co-Founder Algomojo. Full-Time Derivative Trader. Expert in Designing Trading Systems (Amibroker, Ninjatrader, Metatrader, Python, Pinescript). Trading the markets since 2006. Mentoring Traders on Trading System Designing, Market Profile, Orderflow and Trade Automation.

Strong Shift in OI Sentiment

14 sec read


 

There is strong shift in OI Sentiment as there is a huge Open interest build up in 5200 calls which shows that 5200 calls are written. 5200 CE OI is higher when compared to 5000PE,4900 PE,4800PE. Nifty also closes below 5 day EMA(5118) and Weekly 5 EMA High(5131).  Looks Buying will only come if nifty closes above 5131 on EOD Basis.

Rajandran R Founder of Marketcalls and Co-Founder Algomojo. Full-Time Derivative Trader. Expert in Designing Trading Systems (Amibroker, Ninjatrader, Metatrader, Python, Pinescript). Trading the markets since 2006. Mentoring Traders on Trading System Designing, Market Profile, Orderflow and Trade Automation.

Bearish Option Strategy: Nifty Hedged Puts – Nov 2020…

Structurally Nov 2020 series is closing the long pending island gap reversal which is an investing reference. However, emotions are running high during the...
Rajandran R
42 sec read

What Could Possibly Go wrong with Nifty?

As of last 9th Oct 2020 closing of Nifty (11914), PE ratio stands at 34.71. By any means it indicates euphoric markets. Recently there...
Rajandran R
1 min read

Nifty Futures Short Term Overview – July 2020 Series

Markets are trading calm compared to the Month of March, Apr, June 2020. Volatility cooled off and trading ranges get smaller and smaller. However,...
Rajandran R
25 sec read

0 Replies to “Strong Shift in OI Sentiment”

  1. I think sentiment has been converted from bullish to bearish. If you go through the entire 2009 weekly chart, then you will be noticed that market is resting at overbought zone. Even few TA experts are telling that in Jan 2010, we may face some big correction. Please give your views.

  2. so many calls written we also have buyers,so when one says calls are written,it also means calls are bought and because there was a fall in price it is implied bearish?is this understanding correct

  3. @ShaqRead this article to get a more clear picturehttp://www.investopedia.com/articles/optioninvestor/04/060904.asp?viewed=1

  4. after reading the above mentioned article….i am still confused that how increase in OI of 5200 calls implies that 5200 calls were written? being a novice..kindly excuse.thankscm

  5. One Possible reason is that option writers might changed their mindset from writing 5000 PE to 5200 CE. May be they could have a strong belief of expiry closing below 5200… Which keeps then in writing 5200 CE…. Means If they left the positions uncovered and during expiry if nifty closes below 5200 then possibly they would get the entire premium of 5200 CE. Which makes them to build higher open interest in 5200 CE region

  6. hiin decemberwe can expect nifty in range between 5050 5180 because if its go above 5200 there is loss for option seller and if it goes below 5000 than there is also loss so its in tight range and on friday there is trade of 2lac qty in 4700 put and 5200 calls in january at same time so its also indicate range for same in january . if i m wrong plz tell

  7. JUST REMEMBER THIS RALLY IS DUE TO DOLLER WEAKNESS, THE DOLLER INDEX REVERSED ON FRIDAY BIGTIME AND RESULTED IN FALL IN ALL COMODITIES, LONGER TERM MACD IS AT PEAK WHICH WAS AT 21K SO I DONT THINK WE WILL HAVE TO WAIT TILL JAN 10 TO SEE THE FALLASH.SAO AT GMAIL

  8. Jignesh… We cant decided the move just alone seeing the Open Interest charts alone. OI just reflect the sentiment at that instant… We cant expect to continue forever……

  9. thanx for your reply but on friday u mention that 5200 call sold how can u decide after seeing oi he has sold i know from tuesday market came down so might be ur right because oi is note decrese its stil there so plz tell me your view and help me for learn oi in deeply and if possible daily give your view on OI so i will follow your viewthanks

  10. but u r giving response after a week how can i learn i know the volatility of oprion also indicate the buying or selling of the options but Hedgers sold slowley in the market so u cant catch himplz reply earlybye tc

  11. @Jignesh… Dont be angry on me.Stock markets and Bloggin is not my primary Job.Iam a telecom engineer by profession.If you wanna learn with us. Then patience is the only key.

  12. sorry if u feel that i m angry on u, not like that my grammer is weak so u feel my language is rude sorry again.now today i assume that calls are written in 5200 5300 5400 and puts are long 5000 & 4900.if possible for u to give me your email id so i forward u my Open interest excel sheet.plz give me your view and please accept me as your STUDENT.and if any books help me to understand OI also recommend mebyetc

  13. hello sir,How r u?i hope u come back from your native place.please reply my mail i had send on 15 jan if possible 4 u and also tell me your view on OI for january month.

Leave a Reply

Get Notifications, Alerts on Market Updates, Trading Tools, Automation & More