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FUTURES OI

If you think logically Trading futures is the safest bet for Institutions & Big players than
Options Selling. The traded volume may be high in options because of adjustments but
whereas in Future derivative does not have those multiple adjustments so Institutions
pour big one time investment in futures and for protection they buy or sell options based
on the market movement and keeps on adjusting their positions so that more volume &
turnover is recorded in Index options market and it is misunderstood that Institution
plays big in options and few institutions run high frequency Scalping algo bots in
intraday options writing to make returns upto 0.5% per day(which do 1000’s of trades in
a day)

So my point is we can confirm the overall intraday trend of the Index during trending
days

Important Note:

The Percentage (%) concept is found based on the 6 month live market analysis by
me..it’s not based on any theoretical book so these % value are subjected to change
according to market cycle

I'm following it and it's working good for index trading to find the overall trend in intraday
and sometimes it will forecast the next day opening whether it will be a big gap up or
gap down.

So the overall concept is to find the intraday trend not each and every move of the
intraday can’t be predicted.

I give only 25% weightage to Futures OI Data so TA,Price action and your personal
view also need to support the particular direction to take a trade.So one can escape
from trading in the wrong direction and save the loss.
Basic interpretation using price & open interest

PRICE  OPEN INTEREST  INTERPRETATION 

Indication of new money coming and indicates further 

Increase    Increase  
continuance of uptrend 

Increase   Decrease   Increase in price is due to short covering of positions 

Decrease in price is due to newly build short positions and 

Decrease   Increase 
further weakness so its indicates further downtrend 

Traders unwinding their long positions by selling existing 

Decrease  Decrease 
contracts 

Note:-​ Increase & Decrease in OI can be found easily by looking at Change In OI as

shown in the below pic.

We gonna consider only nearby

expiry contract for intraday trading
& we gonna consider Percentage
of change in OI %

These % varies for each market

cycle so i have differentiated into

Trending -​ Uptrend,Downtrend,Higher Vix, Event days & News days

Range Bound -​ Accumulation & Distribution Phase where average intraday market
movement will be below +(or) - 1.5%
Trending Condition

INDEX NORMAL MEDIUM ​ STRONG ​ABNORMAL

BANKNIFTY Below 10% 10% - 15% 15% - 20% Above 22%

NIFTY Below 6% 6% - 8% 8% - 10% Above 10%

Range Bound Condition

INDEX NORMAL MEDIUM ​ STRONG ​ABNORMAL

BANKNIFTY Below 8% 8% - 11% 12% - 15% Above 18%

NIFTY Below 4% 4% - 6% 6% - 8% Above 8%

When you happen to see Strong & abnormal conditions don't go against the trend for
normal & medium conditions you can expect a reversal.

Combine Volume + Price Movement + OI to get the exact direction of breakout in

intraday channel formation

Note:- ​All the above conditions are subjected to vary depending on the market use this
for reference.

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Join Telegram - ​ https://t.me/futureoi​ ​ ​ Contact - ​ ​https.me/rubykumar