Introductory Context
"Filtering the option chain to show only the 10–15 most relevant strikes dramatically speeds up analysis. NSE's option chain allows you to select the number of strikes displayed. The relevant range for most Nifty analysis is ±200–500 points from ATM — the strikes where meaningful OI, volume, and liquidity exist. "
Why Filtering Matters
On a full Nifty option chain showing 70 rows, the OI at the most extreme strikes (say, 20,000 CE or 28,000 CE with Nifty at 24,000) is often zero or negligible. The bid-ask spread at these strikes can be ₹0.05 to ₹0.50 on options with LTP of ₹0.10 — there is no practical market there. Scrolling through 40 irrelevant rows to find the 10 that matter is time wasted.
More importantly, when you display too many strikes, the visual pattern of OI concentration becomes harder to read. The few meaningful OI clusters get lost among many rows of near-zero values. Filtering creates a focused view where the important data is immediately visible without visual noise.
The NSE Chain Filter
On the NSE option chain website, you can control how many strikes are displayed using the 'Number of Strikes' dropdown. Setting this to 10 (meaning 10 strikes on each side of ATM, covering ±500 points on a 24,000 Nifty) provides the optimal view for most analyses — enough range to see the max OI levels and PCR picture, but focused enough to make the data immediately readable.
The Relevant Strike Range for Different Analyses
For Daily Direction Analysis
The relevant range is approximately ±300 points from ATM on a 24,000 Nifty (approximately ±1.25%). This covers the realistic intraday range for a normal session. Strikes further OTM than this rarely have meaningful OI for the current week's expiry and can be excluded from most session analyses.
For Weekly Expiry OI Analysis
The relevant range expands to approximately ±500–600 points from ATM (±2–2.5%). This wider range captures the strikes where institutional writers have positioned for the week and where max OI support and resistance levels typically sit. On the NSE chain filter, showing 12–15 strikes on each side covers this range efficiently.
For Monthly Expiry OI Analysis
Monthly options have OI distributed across a wider range because of the longer time horizon and larger potential moves. The relevant range for monthly expiry analysis is approximately ±800–1,000 points from ATM (±3.5–4%). Showing 20 strikes on each side provides comprehensive coverage.
What to Look For Within the Filtered Range
Once you have filtered the chain to 10–20 relevant rows, your analysis focuses on four data points:
• this is the max call OI level — the most significant near-term resistance derived from the chain. Highest OI on the call side:
• this is the max put OI level — the most significant near-term support derived from the chain. Highest OI on the put side:
• which strikes are seeing new positions built today? Change in OI on the call and put sides:
• is the skew normal, or is there unusual IV at specific strikes? IV distribution across the filtered range:
These four data points from a filtered 10–20 row view give you a complete picture of the option chain's current message in under 2 minutes.
Sensibull and Chain Filtering
Sensibull's option chain view automatically focuses on the most relevant strikes and adds OI charts and analysis tools that the raw NSE chain does not provide. For beginners, starting analysis on NSE's own chain (to learn to read raw data) and then using Sensibull for enhanced visual analysis is an effective combination. Module 4 of this curriculum focuses on reading the raw NSE chain. Platform tools are covered in Module 10.
Filtering for Specific Use Cases
Identifying the Range-Bound Zone
Filter to show 10 strikes on each side. Look at where the highest OI sits on the call and put sides. The range between max put OI and max call OI is the 'expected range' for the expiry cycle — the zone within which options sellers are positioned for the market to stay. If max put OI is at 23,500 and max call OI is at 24,500, sellers are positioned for Nifty to stay between 23,500 and 24,500 for the expiry cycle.
Identifying the Most Active Strikes Today
Filter to show all strikes with volume above a threshold (not directly available on NSE's chain, but achievable by scanning the volume column on a focused filtered view). The 3–5 strikes with the highest volume today are where the active trading is concentrated — typically the ATM and ±1 strike away.
A focused, filtered option chain is more useful than a complete one. The signal-to-noise ratio improves dramatically when you remove the irrelevant extreme strikes from view. Experienced traders often filter to just 8–10 rows — 4–5 strikes on each side of ATM — for their first quick scan of the chain each morning, then expand the view only if they need to check OI at specific outlying strikes.