In major indices like Nifty or Bank Nifty, high Open Interest can indicate strong market interest and liquidity. A surge in OI in Nifty options, for example, can highlight key…
In commodity markets, the relationship between Open Interest and price movement is similarly indicative of trend strength. For example: Rising OI and rising price indicates growing bullish sentiment. Rising OI…
Not necessarily. While a decrease in OI can indicate that traders are closing their positions, which may signal a weakening trend, it doesn’t always lead to a reversal. The context…