📊Market Psychology Unpacked- FnO.

In the F&O market, prices often move less on fundamentals and more on trader psychology. Key dynamics to track: 📈 Open Interest (OI) Trends – Rising price + OI = bullish long build-up; falling price + OI = bearish shorts. ⚡ Implied Volatility (IV) – Spikes show fear or anticipation of big moves; drops signal complacency. 🎯 Options Positioning – Heavy call writing shows resistance zones; strong put writing highlights support levels. 🔄 IV Crush – After events, premiums collapse, punishing late option buyers. 🧠 Crowd Behavior – F&O magnifies greed & fear; sentiment swings often outpace actual fundamentals.