5 Profitable Intraday Setups Using Nifty Option Chain Data

ByBusines Newswire

Intraday traders require rapid tools to earn profits every day in the market. The nifty option chain is one of those tools. It reflects the attractiveness to purchase and sell by the traders. This is one method of reading such data intelligently in order to identify trends. The trends will assist you in making a good trade over one day. These are some of the 5 setups you can use.

  1. Open Interest Support and Resistance Watching Open Interest

Open interest is a way of saying how many contracts traders have in their possession. In case the OI is high in a strike, then the level becomes significant. When the level of OI is elevated in calls, it is taken as resistance, and when it is elevated in puts, it is taken as support. This should be used to plot entries and exits. And, with this method, you can also prevent fake breakouts.

  1. Change in OI of Fresh Positions

Check the daytime changes in the open interest. A price-moving OI is confirming strength. In case OI of calls is on the increase, traders anticipate additional upside in the case that price increases. When the price decreases and put OI increases, the downside is anticipated. The arrangement presents precursors of aggressive actions. Bank nifty option chain is at its best when the market is open for business.

  1. Employ PCR (Put Call Ratio) The Market Mood

The put-call ratio indicates the parity between the put and call. When PCR exceeds 1, a further number of puts would be in action, and traders anticipate a rising of the market. In case of a PCR less than one, then there are more calls in service, and the probability to decrease is in the market. Continue monitoring PCR changes throughout the day so as to guess the direction.

  1. Get Shift Aware

Writers of options change their positions as the market trends alter. Observe OI moving between one strike and another. In case writers escalate to high strikes, they anticipate the market to escalate. They expect a decrease when they move to low strikes. This movement wants to inform you on how the big players are thinking throughout the day.

  1. Combine Price Action with Option Chain
    Price action is simply having a look at charts and candles. Add this to option chain data to make better trades. An example is where price breaks resistance and call OI declines; the breakout indeed is taking place. Whenever support is touched and put OI increase, it looks like bouncing specifically in terms of price. Such a combination provides an excellent risk-reward situation in intraday trades.

Conclusion

Intraday traders have a goldmine in the Nifty option chain. It reveals how money moves throughout the day. These arrangements will enhance your timing and lower false signals. With training, you can learn to use this tool every single day. It is just a matter of keeping it easy and following the data. In the long run, your trade will be more assured and acute.

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