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What is Open interest, how to analyze, OI + price combination trading — complete Hindi guide.
Published by The Retail Trader · AUG 11, 2026 · Features
What is Open interest, how to analyze, OI + price combination trading — complete Hindi guide.
Open Interest tells how many F&O contracts are currently OPEN (active positions). This is different from volume.
Simple definition: > OI = how many contracts are currently active. Volume = how many contracts were traded today. Both are different.
OI vs Volume:
• What it tells – OI: Active positions, Volume: Today's trades
• When does it increase – OI: new contract created, Volume: when traded
• When does it decrease – OI: Contract closes, Volume: Does not decrease (cumulative)
• Use — OI: Trend strength, Volume: Activity level
Keep these four points in mind:
• ↑ Up — OI: ↑ Up, Signal: 🟢 Bullish, Meaning: New longs are banned
• ↑ Up — OI: ↓ Down, Signal: 🟡 Weak bullish, Meaning: Short covering (not genuine buying)
• ↓ Down — OI: ↑ Up, Signal: 🔴 Bearish, Meaning: New shorts are banned
• ↓ Down — OI: ↓ Down, Signal: 🟡 Weak bearish, Meaning: Long unwinding (not genuine selling)
Keep these four points in mind:
• High Call OI at strike X — Resistance at X (call sellers defending)
• High Put OI at strike X — Support at X (put sellers defending)
• OI increasing at level — Level getting stronger
• OI decreasing at level — Level getting weaker
Strategy 1: Trend Confirmation:
• Price up + OI up → Strong uptrend (new longs)
• Price down + OI up → Strong downtrend (new shorts)
Strategy 2: Support/Resistance via OI:
• Highest put OI strike → Support level
• Highest call OI strike → Resistance level
Strategy 3: Breakout Signal:
• Call OI decreasing at resistance → Breakout possible
• Put OI decreasing at support → Breakdown possible
Keep these points in mind:
• 📌 OI QUICK REFERENCE
• PRICE + OI:
• 📊 Price↑ + OI↑ = BULLISH (new longs)
• 📊 Price↑ + OI↓ = Weak (short covering)
• 📊 Price↓ + OI↑ = BEARISH (new shorts)
• 📊 Price↓ + OI↓ = Weak (long unwinding)
• SUPPORT/RESISTANCE:
• 📊 High Put OI = Support
• 📊 High Call OI = Resistance
• 📊 OI increasing = Level strong
• 📊 OI decreasing = Level weak
Keep these four points in mind:
• How to Read an Option Chain?
• How Does F&O Expiry Work?
• What is Put-Call Ratio?
• What Are Option Greeks?
The Retail Trader — educational market analysis. Not investment advice.
This article is for educational purposes only. It is not a buy or sell recommendation, a claim of guaranteed returns, or advisory guidance. Exchanges, SEBI and RBI change rules, rates and procedures from time to time, so verify every figure with your broker or an official source.