Interpreting Derivatives Market News

#1
Please confirm if the below interpretation is correct or kindly help if you have additional inferences.

1) The Nifty (December) futures' premium has decreased from 44.35 points to 29.20 points.
: Trend may be reversing.

2) The total open interest was Rs 119,863 crore and Rs 12,460 crore was added in open interest.
: Does this mean that number of open contracts or writers (in futures) have increased in Nifty in that case, it means they believe it won't cross those levels ?

3) The Nifty call options added 41.84 lakh shares in open interest, whereas the Nifty put options added 70.74 lakh shares in open interest.
: More writers have entered put contracts at different levels.. i.e. it is 5876 today, they might have written puts at 5900 & 6100 (highest change in OI) as visible in NSE site which shows good support in short term.

4) Can we see the Chart for OI in any tool for intraday?

5) Who decides the price of futures i.e. whether it is at premium or discount & what price?

Thanks.
 
Last edited:

Alchemist

Administrator
Staff member
#3
I will reply to 1) 2) and 3) in the evening.

4) OI charts are available on NSE's site.

You can plot both intraday open interest charts as well as EOD open interest charts:

NSE Tame

5) The market decides the price of futures.

Just like stock prices, prices of futures are also determined by supply and demand.
 
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