How to Use Bank Nifty Live to Make Profitable Trades
If you're an options trader, you know how important it is to have access to real-time data during market hours. With our Bank Nifty Live page, you can compare options prices, OI, and volume data for each strike and monitor your selected strike prices to analyze market activity. Here's what you need to know:
Strike Price Selection:
The Bank Nifty Live page allows you to select the strike prices that you want to monitor. You can choose to monitor a single strike or multiple strikes, depending on your trading strategy. Once you select the strike prices, you'll be able to see the chart with time as the x-axis and options prices, OI, and volume data for calls and puts separately on the y-axis.
Charts for Options Price, OI, and Volume:
The Bank Nifty Live page provides you with three charts, each representing options price, OI, and volume data for calls and puts separately. These charts help you to understand the activity happening on the selected strike prices. You can compare the charts for different strikes to see the trend and identify any sudden increase or decrease in OI for calls or puts for a particular strike. This is an indication of some change, and you can use this information to make informed trading decisions.
Options Price Chart:
The options price chart shows you the price of the option contract over time. This chart helps you to identify the trend in the options price and determine the support and resistance levels for the option. You can use this information to make buy or sell decisions. For example, if you notice that the options price for a particular strike price is consistently increasing over time, it may indicate that the market sentiment is bullish. On the other hand, if you notice that the options price is consistently decreasing over time, it may indicate that the market sentiment is bearish.
The OI chart shows you the open interest for the option contract over time. Open interest refers to the number of outstanding contracts for a particular strike price. This chart helps you to identify the sentiment of the market for the option contract. If there is an increase in open interest, it means that traders are opening new positions in the option contract, indicating a bullish sentiment. Conversely, if there is a decrease in open interest, it means that traders are closing their positions in the option contract, indicating a bearish sentiment.
The volume chart shows you the volume of the option contract traded over time. This chart helps you to identify the liquidity of the option contract and the level of participation of traders in the market. If there is a high volume, it means that there is a high level of participation, indicating that traders have a strong interest in the option contract.
Let's say you're monitoring a call option for a strike price of 37,500. You notice that the OI for this strike has increased significantly, and there is a corresponding increase in options price. This indicates that there is some bullish sentiment in the market for this strike. Based on this information, you might decide to buy the call option. On the other hand, if you notice a sudden decrease in OI for a put option for a strike price of 37,000, this