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1. Amar Pawar   I Like It. |Report Abuse|  Link|Aug 19, 2020 12:28:18 AMReply
On 18th Aug 2020, there was more 'Open Interest, in a 'Put' side of Nifty for strike rates of 11000, 11100, 11200, 11250 and 11300. Comparatively the 'OI' was much lower in a 'Call' side. I assumed, this is a bearish sign and bought no. of Puts. But market opened by a small bullish trend and all the day was going up and up & Nifty closing with +138 points.(Nifty closed at 11385/-).
My question is, why market went bullish and why didn't it go bearish even after so much buying is a 'Put'?
1.2. Robinson   I Like It. |Report Abuse|  Link|Sep 16, 2020 2:05:05 AM
Increasing Open Interest on PUT side signifies that there is a good support. So market can be Bullish when OI in calls are less than Puts atleast around ATM & slightly OTM
1.3. Ashok V.   I Like It. 1|Report Abuse|  Link|Jan 9, 2021 12:42:44 AM
I think you made a mistake. If OI is increasing in OTM PE, it's a sign of bullish market. Why ? FII & MF are preferring selling options. They sold & hold OTM PE & created OI. When market turns bullish, PE premium get reduced & they book profit !
Always study all 4 compartments of Option Chain. At least OTM sides.