How do I use F&O data (OI) for market direction?

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Traders talk about Open Interest data. How do I use Put-Call Ratio and OI to predict Nifty direction?

#options-and-futures

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Trading Wolf

Trader · 15 days ago

PCR (Put-Call Ratio) = Put OI / Call OI. PCR above 1.2 = bearish sentiment (many put buyers = contrarian bullish). PCR below 0.7 = bullish sentiment (contrarian bearish). Extremes often mark turning points.

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Market Hawk

Trader · 15 days ago

Max pain is the strike where option sellers lose least — the market tends to move toward max pain as expiry approaches. Check max pain on websites like optiontradinglevels.com before expiry trading.

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How do I use F&O data (OI) for market direction?

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