How should I interpret changes in Open Interest alongside price movements on FYERS charts?

How should I interpret changes in Open Interest alongside price movements on FYERS charts?

Open Interest (OI) represents the total number of outstanding futures and options contracts in the market. When you track OI along with price movements on FYERS charts, you can understand position buildup, unwinding, and possible shifts in market sentiment. OI is available only for derivative instruments such as index and stock futures and options.

Interpreting open interest with price movements

ScenarioInterpretationMarket sentiment
Increasing OI + Increasing priceLong buildupBullish
Increasing OI + Decreasing priceShort buildupBearish
Decreasing OI + Increasing priceShort coveringBullish reversal
Decreasing OI + Decreasing priceLong unwindingBearish reversal

How to view OI data on FYERS

  • Log in to FYERS on Web or App.
  • Open a derivative instrument such as NIFTY Futures, BANKNIFTY Futures, or stock F&O.
  • Open the chart and add the Open Interest indicator.
  • Compare OI changes with candlestick price action to understand position buildup and unwinding.

What if...

ConditionSolution
OI remains flat while price movesTraders may not be adding new positions and trend conviction could be weak.
Both price and OI fall sharply after a news eventExisting positions may be getting unwound and the move could reflect panic or early signs of a reversal.
OI surges but price stays in a rangePositions may be building up and a breakout or breakdown could follow.
For stronger confirmation, combine OI with volume and trend indicators instead of relying on OI alone.

Last updated: 30 Jun 2025