Nifty Options Open Interest Analysis sheet

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Why you should trade in Nifty?

1. Liquidity (Volume)

Nifty is one of the most traded Instruments in Options world. People trade in Nifty extensively and this is reflected by Options trading volume as well. On an average on most days you will have 5 lakhs of Call and 5 lakhs of Put traded on Nifty alone.

In Nifty you will see most Strike Prices have good volume. For example if Nifty is being traded at 11,500 then also you will see good Call and Put volume on 12,000 and 11,000 points as well.

The volume at those deep points will also be greater than that of average Stock option trading volume. This makes it one of the most liquid instrument to trade in.

2. Insulated to Sector News

The second benefit is that one or two stock related news can not impact the overall sentiment of Nifty movement. This makes it adverse to single sector news. For example if INR is falling it is positive for IT and Pharma but negative for Banks.

This event will not have one sided impact on Nifty. Since news have power to disrupt any technical trade setup. The Nifty being an index is largely insulated to it.

3. Limited Movement

There is also not huge movement in either direction. For example a 1% move in Nifty is considered as very good move and barely you will see move beyond 1% on most days. So even if you are on wrong side of trade the loss is minimal.

If you compare this to stocks then your loss can compound if you do not have a stop loss in place. So it is better to trade in Nifty early on as you can understand basics of Options trading without losing much money in market.

READ  Axis Bank Options Open Interest Analysis Excel Sheet

Nifty gives you ample time to come out of trade and it also gives you time to minimize your loss. Since most of the strike prices have liquidity so you do not have problem in exercising your trade.

Important Points for Nifty Options Trader

Before downloading the Nifty Options Open Interest Analysis Excel sheet you may be interested in knowing few things which will help you make most from the sheet.

I have covered basic details of Nifty for Beginners. In this post I will cover things important for Nifty Option trading. Below highlighted points make Nifty one of the most important instruments for Options trading

I will also provide some details on why below points are helpful in case it is not clear enough

  • The Lot size of Nifty is 75.
  • It has the highest volume on any given day so liquidity is not an issue
  • The chances of loss and profit is minimal if you are trading single lot
  • Nifty movement is related to World Indices to some extend
  • It is less volatile compared to Stocks.
  • Predicting Nifty movement is easier than Stocks
  • Individual Stock may receive a news which can change trend
  • Nifty is combination of 50 stocks so trend reversal should be World Economy related
  • No individual stock related news or sector related news alone can impact Nifty
  • Options expire that is value becomes 0 on Expiry date.
  • Expiry date is last Thursday of a month. If that day is holiday and Wednesday becomes the last day.
  • You should always sale options and do not leave it to expire.
READ  TATA Motors Options Open Interest Analysis Excel Sheet

Nifty Options OI Sheet download

You need to enter your Name and Email Address below. The download link will be send to your Email address. You need to click on the download link to download the file.

Since download link will be send to your Email address you should make sure that your Email address is correct.

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What do to after downloading the sheet?

Only downloading the sheet will not be enough. You should ideally understand the information present in the sheet. The sheet presents Long and Short information based on the Open Interest data.

I have written separate article on information the sheet presents and how to use the information to make your trade plan. In case you have not used Open Interest data before to trade then you should read my article.

In case you are new to terms like Long and Short then it is important to know these terms before trading using the excel sheet. The below article will eliminate all the doubts you have on this subject.

Read How to trade using Long and Short Information?

Along with Nifty people are also interested to trade in bank nifty. If you are interest in trading bank Nifty options then you should read below article. On that article you can also download bank nifty options open interest analysis sheet.

READ  Bank Nifty Options Open Interest Analysis sheet

Download Bank Nifty Options Open Interest Analysis Sheet

Index Instruments are not the only instruments popular in Options traders. Though they are the most traded ones but people also trade in Individual stocks as well. The reason is that sometimes it is easy to predict price movement of a stock then to predict movement of a index.

In case you are interested to trade in Stock Options then do not worry we have created list of Top stocks to trade for Options and created individual options open interest analysis sheet for those stocks. You can download the same using below link.

Download free excel sheet on Index and F&O stocks

Conclusion

I have seen people tracking some stocks and they trade in and make profit. But for Beginners I would recommend Nifty as loss is less and profit is less. It will also help them learn the basics of options and be prepared psychologically to book profit and loss.

This psychological maturity is most important part of Option Trading. So learn the basics with Nifty and Bank Nifty. Note options trading is more of Psychological warfare as well. You should be open to book loss and profit as per your trade plan.

People make loss as they hope that things will change as per their wish. But this is cruel world and sometimes your hope does not pay you off. So stick to the basics and trade as per your plan and plan your trade before.


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