Nifty Option Trading Simplified with OI Analysis
Sep 25, 2025
Nifty Open interest analysis with price action is one of the best technical analysis method that can be used to identify the key reversal areas and price action support zone.
Options Trading requires understanding of momentum, trend, time to expiry and range. Hence it becomes utmost important to know how to interpret Open Interest data.
Nifty Hourly chart with OI Data
Open interest - showcases the total number of outstanding contracts for a specific asset at any given time. This analysis can be used for both Positional and Intraday basis and Open Interest is always viewed from the seller’s perspective as it helps to understand the big players activity.
As shown on above chart, the left side green build-up is suggesting change in Call open interest and right-side shows put open interest. We can see that 25100 has the highest in call open interest (green) which means that Nifty crossing above it is not going to be easy. Calls sellers are aggressive at this level. On the downside, 24900 levels have highest put OI which can act as a near-term support. So, for now, for this week 24900 to 25100 levels is likely to be the range for the Index.
In a nutshell, Option Trading can be made easier by using these simple methods of analysis, one can clearly form option strategy in direction of big players by looking at Open interest profile. With this information one can formulate Option trading strategy like short strangle for the above view. Thus options are powerful instruments that can be used to trade in any type of market environment.
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