What is the significance of Open Interest in Bank Nifty or Nifty options?

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 support or resistance levels, as traders are likely holding large positions at those levels. Monitoring changes in OI can give insight into how traders are positioning themselves for potential market moves.