On our readers request we have developed Banknifty options Open interest analysis excel sheet. This is the similar Excel sheet we have posted for Nifty options here. This Excel has an additional feature to select the expiry date of option series to accommodate both weekly and monthly options. The Excel sheet can be downloaded from the end of this post. Let’s have a brief introduction of Open interest concepts before understanding how to use the Excel sheet.
Introduction to Open Interest
Open Interest represents the number of outstanding contracts for Future and Option contracts. For Options, every strike price of Option contract has an individual Open Interest value. It can also be defined as the total number of Future or Option contracts that has not been squared off. Open Interest tends to zero value at the expiry day of derivatives market as every one squares off their open positions.
There is a very tight co-relation between Open Interest, Price and Volume. It helps to interpret the trend of Market very effectively. An increase in open interest along with an increase in price is said to confirm an upward trend. Similarly, an increase in open interest along with a decrease in price confirms a downward trend. An increase or decrease in prices while open interest remains flat or declining may indicate a possible trend reversal. Te relationship between Open Interest, Price and Volume can be summarized in the following table:
| Price | Volume | Open Interest | Market Trend |
| Rising | Up | Up | Strong |
| Rising | Down | Down | Weak |
| Declining | Up | Up | Weak |
| Declining | Down | Down | Strong |
Banknifty Options Open Interest Analysis Excel Sheet
This Excel sheet is designed to predict the Trend of each Option Strike of Banknifty. The Trend determination is based on Option Price change and change in Open Interest with respect to previous day. Below is the summary of calculations present in Excel Sheet:
| Price Change | Change in Open Interest | Signal |
| <0 | <0 | Long Liquidation |
| <0 | >0 | Short Buildup |
| >0 | >0 | Long Buildup |
| >0 | <0 | Short Covering |
Below are the screen shots:
How to use this Excel Sheet?
Step 1: Download the Excel sheet from the link provided at the end of this post.
Step 2: Double click and open the downloaded file. It will throw some warnings for the first time. Click on OK.
Step 3: Input the valid Expiry date for Banknifty in the format DDMONYYYY and click on Get Data
Step 4: Make sure you are connected to Internet. The Excel sheet will update every 5 minutes.
Download Link
Please download Banknifty options Open interest analysis excel sheet from the below link. Let us know in comments section if you have any queries.
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