Shares of HDFC Bank dipped by nearly 0.7% today after SEBI issued an administrative warning over non-compliance in its investment banking activities. The bank has committed to addressing these concerns, but the stock’s movement reflects heightened market interest.
HDFC Bank, ICICI Bank, and State Bank of India (SBI) are the top three contributors to the Nifty Bank index, making their performance a key driver of the index. Using Upstox Pro’s Options OI Analysis for Nifty Bank provides insights into how the market is responding.
Why Open Interest (OI) Matters
OI tracks the total number of open options contracts on an index, helping traders gauge market sentiment. Changes in OI paired with price movements can signal trends.
For Nifty Bank:
- Rising call OI alongside a price dip suggests bearish sentiment, as traders anticipate further downside.
- Monitoring Change in OI at key strikes helps identify possible support and resistance levels.
Using Upstox Pro’s Options OI Analysis:
- Access the feature: Log in to Upstox Pro and go to the ‘Discover’ section. Select the ‘Explore’ tab and scroll down. Click on ‘Options OI Analysis’ and select ‘NIFTY BANK’.
- Track live data: View OI, Change in OI, and other metrics for calls and puts.
- Interpret trends: Rising Put OI at lower strikes (₹52,500, as seen in the screenshot below) could signal potential support, while increasing Call OI at higher strikes (₹54,000, as seen in the screenshot) may suggest resistance.
- Strategise: Use OI data to time trades, confirming trends with price charts.
For example, today’s NIFTY BANK data indicates heightened activity near ₹53,500 on the put side, suggesting traders see this as resistance level. You can check this from the “Change OI” tab (see screenshot below).
With Options OI Analysis, you can navigate events like HDFC Bank’s dip by analysing the broader Nifty Bank index.
Have you tried Upstox Pro’s Options OI Analysis feature? Let us know your thoughts!
Looking for more details? Check out our FAQ post on Options OI Analysis.