1. An Increase in Open-Interest with an Increase in cost-of-carry indicates accumulation of long -position, which means that the price of the underlying is likely to go up in the next few trading sessions.
2. An Increase inopen-interest witha decrease in cost-of-carry indicates addition of short positions,which means that the price of the underlying is likely to go down in the next few trading sessions.
3. Similarly, a fall in open-Interest accompanied by a rise in cost-of-carry indicates closure of short positions, which occurs when the market moves against a trader's exisiting short positon, thereby triggering his stop-loss. This means that the stock is not likely to fall and may witness upside in the next few trading sessions.
4. Likewise, a fall in both the open interest and cost-of-carry indictes closures of long positions,whcih occures when the market moves against a trader's existing long possition, thereby triggering his stop-loss.This means that the stock is not likely to observe further upsides and is likely to witness a fall in the next few trading session
