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What is open interest, how to analyze, how to use it in F&O trading — complete Hindi guide.
Published by The Retail Trader · AUG 11, 2026 · Features
What is open interest, how to analyze, how to use it in F&O trading — complete Hindi guide.
Open Interest tells how many contracts are currently OPEN – that is, how many active positions there are. This is different from volume (volume = how many trades took place, OI = how many are currently active).
Simple definition: > Open Interest = How many F&O contracts are currently active. Different from volume — volume daily trade count, OI active positions.
Keep these four points in mind:
• What it tells – Open Interest: Active positions, Volume: Trades today
• Reset — Open Interest: No (cumulative), Volume: Daily reset
• Signal — Open Interest: Position building/unwinding, Volume: Activity level
• Best for — Open Interest: Trend analysis, Volume: Liquidity check
Keep these four points in mind:
• Up — OI: Up, Signal: Bullish, Meaning: New longs building (strong trend)
• Up — OI: Down, Signal: Weak bullish, Meaning: Short covering (not genuine buying)
• Down — OI: Up, Signal: Bearish, Meaning: New shorts building (strong downtrend)
• Down — OI: Down, Signal: Weak bearish, Meaning: Long unwilling (not genuine selling)
This is the most important OI signal — the combination of price and OI.
High Call OI = Resistance:
• Where highest call OI = strong resistance
• Call sellers will not know the vehicle price.
High Put OI = Support:
• Where highest put is OI = strong support
• Put sellers vehicle price will not fall
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:
• High call OI strike = Resistance
• High put OI strike = Support
• Trade the range
Strategy 3: OI Shift (Breakout Signal):
• Call OI decreasing at resistance → Breakout possible
• Put OI decreasing at support → Breakdown possible
Keep these points in mind:
• 📌 OPEN INTEREST QUICK REFERENCE
• WHAT IS IT:
• 📊 Active F&O contracts (not volume)
• 📊 Cumulative (resets on expiry)
• PRICE + OI COMBINATIONS:
• 📊 Price ↑ + OI ↑ = BULLISH (new longs)
• 📊 Price ↑ + OI ↓ = Weak (short covering)
• 📊 Price ↓ + OI ↑ = BEARISH (new shorts)
• 📊 Price ↓ + OI ↓ = Weak (long unwinding)
• SUPPORT/RESISTANCE:
• 📊 High Call OI = Resistance
• 📊 High Put OI = Support
• 📊 OI increase = Level getting stronger
• 📊 OI decrease = Level getting weaker
• SIGNALS:
• ✅ Call OI decreasing near resistance → Breakout
• ✅ Put OI decreasing near support → Breakdown
• ✅ Price + OI agree = Strong trend
• ✅ Price + OI disagree = Weak trend
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.