Hi,
8600 held (thankfully).... kudos to you and option chain analysis :thumb:
MAX PUT COI @ 8500 & OI @ 8600 , avg is 8550. may be down side target and MAX CALL COI @ 8700 OI @ 9000 avg is 8850 may be upside target.
This is a new funda I have picked up from your recent posts. Don't know whether it is correct. Please comment
I normally take the COI levels for Intraday.
Today the Levels started with 8600-8800.
Then it changed to 8500-8700.
For NIFTY if the COI Range is say less than say 200 points, The first target is safely assumed to be the average of the COI. If we know the Trend then the COI @ PE or CE will be target.
For today, when the COI was at 8600-8800, the AVG was 8700 and so it became the first target. And since the Range is not more than 200 points and the Trend was down, the next target becomes 8600.
Then the COI changed to 8500-8700. The AVG is still 8600, which would be the target.
If the COI range is more than 200 points then I normally conclude that it would be a FLAT day and I take the AVG of COI and OI for the target.
But it does not work always. The most difficult part is deciding
1. The Trend for the Day
2. Deciding if it would be Trending or FLAT.
Once you know the above 2, then you can use the COI to find the levels.
It does not work always... For example the MAX OI for Reliance was at 820-900 for the past three days. But Reliance made high of 940... But the MAX OI did not change... Today finally the MAX OI changed to 900-940. So when the STOCK / Index is completely going in one direction like RELIANCE, it was steep Climb from 810 to 940 without much resistance...
