Nifty Option Chain: Technical Analysis Tools

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…

Why trade in Nifty only?

– 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

What are the various Trading Styles?

1) Intraday Trading
2) Positional Trading

Also Check:

Nifty Open Interest Live Chart: Nifty Option Chain | Nifty Trader

Nifty Change in Open Interest Live: Nifty Option Chain | Nifty Trader

Nifty Put Call Ratio | Nifty Option Chain | Nifty Trader


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  2. I want to open new trading account. Plus want to get wise trading advisory calls.
    How can I get both these two things.

    • Discount brokers will charge less brokerage but they do not provide much advisory. Some are Zerodha, SASOnline, RKSV etc.
      Full service broker charge high brokerage and they do provide their own research and advisory calls. Some are Sharekhan, ICICIDirect, AXIS Capital etc

  3. Could somebody enlighten me how index option trading Put and Call open interest could affect the level of index itself. Call or Put option don’t hold any physical shares so how can it affect the level wheras nifty index calculated based on number of shares traded.


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