If a particular stock has a market cap of INR 1 Trillion and OI is just ten thousand then the Open Interest data should not be used to identify levels for that particular stock.Īlso, if the stock is in sharp uptrend or the momentum is very strong, the trader should not rely on support and resistance from these charts.
Similarly, the strike price with highest Open Interest of Puts of considered a resistance level for that stock Generally speaking, the strike price with highest OI of Calls is considered a resistance. The charts can be used to identify the support and resistance levels based on Open Interest data. The total open interest of Puts and Calls is visible for each strike price for that particular stock. The NSE Option Chain chart for stocks above shows open interest data for stock options that are trading on NSE India. What is “Stock Options Chart for derivative stocks”?
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