How should I interpret changes in Open Interest alongside price movements on FYERS charts?
Reading Open Interest (OI) in conjunction with price trends on FYERS charts can help you gauge market sentiment more effectively. OI represents the total number of open futures or options contracts at a given time, and its movement alongside prices provides clues about trader behaviour and potential market direction.
Interpreting open interest with price movements
| Scenario | Interpretation | Market sentiment |
|---|
| Increasing OI + Increasing price | Long buildup | Bullish |
| Increasing OI + Decreasing price | Short buildup | Bearish |
| Decreasing OI + Increasing price | Short covering | Bullish reversal |
| Decreasing OI + Decreasing price | Long unwinding | Bearish reversal |
How to view OI data on FYERS?
- Log in to FYERS (Web or Mobile).
- Open any derivative instrument (like NIFTY Futures).
- Select the 'Open Interest' indicator from the chart.
- Observe OI values in relation to candlestick patterns for actionable insights.
What if...
| Condition | What it could mean |
|---|
| OI remains flat despite price movement | Possible lack of conviction in trend |
| Both price and OI fall sharply post news event | Panic unwinding; watch for bottoming signs |
| OI surges but price doesn’t move | Build-up phase; breakout or breakdown ahead |
You can combine OI with Volume indicators for more accurate confirmation.
Last updated: 30 Jun 2025
Related Articles
Can I customise the Open Interest indicator on FYERS Charts?
Yes, FYERS Charts allow you to customise the Open Interest (OI) Indicator to match your trading strategy. You can modify both the type and period of the moving average applied to OI data, giving you more control over how trends are visualised and ...
What does stable Open Interest indicate about market trends on FYERS charts?
Stable Open Interest (OI) on FYERS charts reflects a steady number of outstanding contracts over a period of time. While not as dramatic as sharp rises or falls in OI, this stability carries important signals about underlying market sentiment and ...
How does the Open Interest indicator work on FYERS charts?
The Open Interest (OI) Indicator on FYERS charts helps visualise the strength and direction of market activity in the derivatives segment. It offers a simple yet powerful way to assess whether new positions are being added or closed, providing ...
What are the implications of abnormally high Open Interest on FYERS charts?
Abnormally high Open Interest (OI) levels on FYERS charts can be a critical signal for traders, especially in the derivatives segment. It often reflects heightened trader activity and increased exposure, which may impact price stability and market ...
What is Open Interest indicator?
The Open Interest (OI) Indicator on FYERS charts is a key technical tool used primarily in futures and options trading. It reflects the total number of open contracts that remain unsettled, helping traders measure market participation and trend ...