For NIFTY option-chain analysis, especially if your goal is option selling, use this fixed two-stage checklist:
🟡 A. PRE-MARKET OPTION CHAIN ANALYSIS
Before 9:15 AM
1. Check NIFTY Spot
Previous close
Expected opening/GIFT NIFTY
Current ATM level
Expected gap-up/gap-down
2. Identify ATM & Nearby Strikes
For example, if NIFTY ATM = 24,000:
23,700 | 23,800 | 23,900 | 24,000 | 24,100 | 24,200 | 24,300
Focus mainly on ATM ± 3–5 strikes.
3. Check Call OI
Record:
Highest Call OI
Second-highest Call OI
Call OI change
Fresh Call writing
Call unwinding
Strong Call writing → Potential resistance
4. Check Put OI
Record:
Highest Put OI
Second-highest Put OI
Put OI change
Fresh Put writing
Put unwinding
Strong Put writing → Potential support
5. Identify Major Resistance
Look for strikes with:
High Call OI + increasing Call OI
Example:
24,200 CE → very high OI + fresh writing
→ 24,200 becomes an important resistance candidate.
6. Identify Major Support
Look for:
High Put OI + increasing Put OI
Example:
23,800 PE → very high OI + fresh writing
→ 23,800 becomes an important support candidate.
🟠7. Analyze OI Change
This is more important than simply looking at total OI.
Watch for:
| NIFTY | Call OI | Put OI | Interpretation |
|---|---|---|---|
| ↑ | ↓ | ↑ | 🟢 Bullish |
| ↓ | ↑ | ↓ | 🔴 Bearish |
| ↑ | ↑ | ↑ | 🟡 Needs price confirmation |
| ↓ | ↓ | ↓ | 🟡 Needs price confirmation |
Use option price + OI + NIFTY price together rather than OI alone.
🟣 8. Check PCR
Calculate:
PCR = Total Put OI ÷ Total Call OI
Record:
PCR = ______
Then compare it with:
Previous session PCR
Recent PCR trend
OI changes
NIFTY price action
Don't use PCR alone to decide a trade.
🔵 9. Check IV
Record IV around ATM and your intended strikes.
ATM IV
Put IV
Call IV
IV rising/falling
IV unusually high?
For option sellers, high IV can mean richer premiums but also greater risk, so don't treat high IV as an automatic sell signal.
🟢 10. Check India VIX
Record:
VIX = ______
Then ask:
Low volatility?
Normal volatility?
High volatility?
Any sudden VIX increase?
Combine VIX with the expected market range and event risk.
🔴 11. Check Max Pain
Record:
Max Pain = ______
Use it only as a secondary reference.
Don't assume NIFTY must move toward Max Pain.
🟡 12. Find the Expected Option-Chain Range
Create:
Support = ______
Resistance = ______
ATM = ______
Expected range = Support → Resistance
This gives you your pre-market option-selling map.
🟢 13. Form PRE-MARKET BIAS
Bullish
Possible combination:
Put writing ↑ + Call unwinding + Support strong
→ Bullish bias
Bearish
Possible combination:
Call writing ↑ + Put unwinding + Resistance strong
→ Bearish bias
Neutral/Range
Call writing + Put writing
→ Possible range-bound market.
But wait for price confirmation after the opening.
🔥 B. AFTER 15-MINUTE OPTION-CHAIN ANALYSIS
9:15–9:30 AM
This is your confirmation stage.
14. Check NIFTY's Actual Opening
Gap up
Gap down
Flat
Gap filled
Strong directional move
Immediate rejection
Record:
9:15–9:30 High = ______
9:15–9:30 Low = ______
15. Compare NIFTY With Option Chain
Ask:
If NIFTY is rising:
Is Put OI increasing?
Is Call OI decreasing?
Is Put premium falling?
Is Call premium rising?
If yes → bullish confirmation becomes stronger.
If NIFTY is falling:
Is Call OI increasing?
Is Put OI decreasing?
Is Call premium rising?
Is Put premium falling?
If yes → bearish confirmation becomes stronger.
16. Check Fresh Writing vs Unwinding
This is one of the most important checks.
Bullish confirmation
Put writing + Call unwinding
↓
Support strengthens.
Bearish confirmation
Call writing + Put unwinding
↓
Resistance strengthens.
Confusing situation
Call writing + Put writing
↓
Possible range.
Wait for price to break and establish direction.
17. Check Whether Support Is Moving
Example:
Initially:
23,800 PE → strong Put OI
After 15 minutes:
24,000 PE → Put OI increases significantly
This may indicate support shifting upward.
Similarly, if Call writing moves from 24,200 to 24,100, resistance may be shifting downward.
This is often more useful than simply looking at the largest OI number.
18. Check Whether Resistance Is Moving
Track:
Highest Call OI strike
and
Change in Call OI
Ask:
Is resistance staying at the same strike, moving higher, or moving lower?
This helps identify whether sellers are becoming more bullish or bearish.
19. Check Option Premium Behavior
Don't look at OI alone.
For your important strikes record:
Strike | OI | OI Change | Premium | Premium Change
For example:
24,200 CE
OI ↑
Premium ↓
NIFTY near resistance
→ Potential Call writing.
Similarly:
23,800 PE
OI ↑
Premium ↓
NIFTY holding support
→ Potential Put writing.
20. Recheck PCR at 9:30
Record:
Pre-market PCR = ____
9:30 PCR = ____
Then ask:
PCR increasing?
PCR decreasing?
Is price confirming?
Is OI change confirming?
21. Check VWAP + Option Chain
This gives a stronger confirmation.
🟢 Above VWAP
Combined with:
Put writing + Call unwinding
→ Stronger bullish setup.
🔴 Below VWAP
Combined with:
Call writing + Put unwinding
→ Stronger bearish setup.
🟡 Around VWAP
Combined with:
Call + Put writing
→ Possible range/choppy market.
22. Final 9:30 Bias
🟢 BULLISH
Check whether most of these are true:
NIFTY above VWAP
Higher-high/higher-low
Support holding
Put writing
Call unwinding
Put premium falling
Call premium rising
PCR supportive
Volume confirms
Possible strategy → Look for PE selling after confirmation.
🔴 BEARISH
NIFTY below VWAP
Lower-high/lower-low
Resistance holding
Call writing
Put unwinding
Call premium rising
Put premium falling
PCR weakening
Volume confirms
Possible strategy → Look for CE selling after confirmation.
🟡 RANGE/NEUTRAL
NIFTY between support/resistance
VWAP flat
Call writing
Put writing
Both sides have strong OI
No clear breakout
Low/declining volume
Possible strategy → Range-bound option selling only with defined risk; otherwise wait.
📋 YOUR DAILY 20-POINT OPTION-CHAIN CHECKLIST
PRE-MARKET
☐ NIFTY spot/ATM
☐ GIFT NIFTY/opening indication
☐ ATM ± 3–5 strikes
☐ Highest Call OI
☐ Highest Put OI
☐ Call OI change
☐ Put OI change
☐ Fresh Call writing
☐ Fresh Put writing
☐ Call unwinding
☐ Put unwinding
☐ PCR
☐ IV
☐ India VIX
☐ Max Pain
☐ Support
☐ Resistance
☐ Expected range
☐ Event risk
☐ Preliminary bias
AFTER 15 MINUTES
☐ Opening range high/low
☐ NIFTY price structure
☐ VWAP
☐ Volume
☐ Support reaction
☐ Resistance reaction
☐ Call OI change
☐ Put OI change
☐ Writing/unwinding
☐ PCR change
☐ IV change
☐ Support shifting?
☐ Resistance shifting?
☐ Option premium behavior
☐ Final bullish/bearish/neutral bias
⭐ Golden Formula
PRE-MARKET
OI + OI Change + PCR + IV + VIX + Support/Resistance = PLAN
AFTER 15 MINUTES
Price Action + VWAP + Volume + OI Change + Premium Behavior = CONFIRMATION
FINAL
CONFIRMATION → STRIKE SELECTION → ENTRY → SL → TARGET
For option selling, the biggest mistake is selecting a strike first and then looking for reasons to justify selling it. Determine the market structure first; select the strike second.
Reviewed by Admin team
on
August 22, 2026
Rating:
