Prediction time - Option Chain

Predicting the unpredictable - This was one of the main reasons I got hooked to stock Markets. Inspite of spending more than 1/4th of the day on phone I somehow manage to squeeze out time to analyze the markets.  I am not sure, why I love such things [markets not talking over phone ;-)]. In this post I will be covering my analysis on the "Option Chain" of Nifty Futures for the current month provided by NSE-India. 

From the Option Chain table I look for the following:

1. Maximum "Open Interest"[OI] for a "Call" - For the current series[December] I see the maximum OI for 6000 Call. 

2. Maximum OI for a "Put" - For the current series I see the maximum OI for 5600 Put. 

What are the possibilities of the markets direction?

-It is very likely that 5600 Put is being written. If the market movers have to benefit, Nifty has to fall close to 5600 or below 5600. This is logical because 5600 Put will have maximum value around this region.

If we consider 5600 region to be the base for this series, it is very likely that Nifty might close above 6000, because of the huge OI in 6000 Call.

 I feel people are buying 6000 Call as the market is falling and writing 5600 Put. Time will tell the future :-)

Happy Trading

-Sri