For Nifty Option Chain Analysis you can use the following Technical Analysis tools:
– Technical Indicators such as stochastics, Oscillators, RSI, MACD etc
– Trend Lines and Channels
– Support and Resistance
– Opening Range Breakout
– Moving Averages
– Elliot Wave Theory – Retracements and Extensions
– Patterns such as HnS, Bear and Bull flags etc.
– Pivots such as Standard Pivots, Camarilla Pivots etc.
– Nifty Option Chain Analysis (or Open Interest Analysis)
– Volume and Price Breakouts
– Gann Square
– And many more…
– Nifty is Index of highly active stocks on NSE. In F&O segment, Nifty Futures and Options are most liquid.
– Bid-Ask spread is low. Low Bid-Ask spread allows us to exploit arbitrage opportunities
– High liquidity allows us to create various strategies using Options such as straddle, covered put, butterfly span etc.
– Margin Requirement is low.
– Unforeseen events have less impact on Index compared to individual stock.
– The total number of participants trading these stocks is huge. Hence it is very difficult to manipulate Nifty Index.
– Good for hedging equity exposure
1) Intraday Trading
2) Positional Trading
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