01
Start with the raw chain
An NSE option chain lists, for each strike, the call and put open interest, change in open interest, volume, last price and implied volatility. Read it in three passes: where positions are concentrated, where they changed today, and where implied volatility is high or low.
02
Open interest and its units
Open interest is reported in contracts or in units depending on the source. A unit count is the contract count multiplied by lot size, so mixing the two overstates positions by the lot size. Always confirm which one a table uses before comparing strikes or computing exposure.
03
Layer gamma and delta on top
1. Find the walls: the strikes with the highest call and put open interest.
2. Find the gamma flip: the spot level where net GEX changes sign.
3. Read the sign at spot: positive implies dampening, negative implies amplification.
4. Read DEX: the size and sign of the existing directional hedge.
Open interest alone tells you where contracts exist. Gamma and delta weighting tells you where they matter for hedging, which is why a lower-OI strike close to spot can matter more than a larger one far away.
04
Common mistakes
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Treating the highest-OI strike as guaranteed support or resistance.
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Ignoring that PCR, max pain and GEX answer different questions.
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Using a stale snapshot: open interest changes through the session.
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Comparing numbers across sources without checking units and timestamps.
05
Frequently asked questions
How do I read an option chain for Nifty?
Start with open interest and its change by strike, then add implied volatility, then layer gamma and delta exposure to see where hedging matters.
Does Arkenwell show GEX on the option chain?
The Options workspace shows the chain with Greeks, and the Dealer Positioning workspace shows the GEX and DEX profile for the same data.
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