Interpreting top 10 open interest – 30-September-2011

This item was filled under [ Traders zone ]

As options open interest shows us the footprint of smart money/big players, so lets try to decipher their footprint. Here is the list of option strikes (October expiry) that have got highest open interest as of Friday’s close.

S&R levels as per OI - 30-Sept-2011

Observations –
1) 5000 and 5200 CALLs have seen highest OI in this new series indicating these levels as resistance.
2) 4700 and 4800 PUT have seen highest OI in this new series indicating these levels as good support.

Interpretation –

1)4400 PUT had seen trading in the order of 22 lacs OI. This could provide support in event of fall below 4700 level.

2) 4500 PUT do not have higher OI then 4400 or 4600 level hence this psychological level might not be of much use.

Hope this analysis helps you in forming your own views on market. Feel free to drop your comments on the post. Let me know if you would like to see something more in the analysis.

Disclaimer These are my views on the market and I could be wrong in reading it. Please use your own judgment and make sensible trading decision based on your own analysis.

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