Introductory Context
"The NSE option chain uses colour to distinguish ITM options (coloured background) from OTM options (white background). The ATM strike sits at the boundary between ITM and OTM on each side. This colour coding changes dynamically as the underlying moves, allowing instant visual identification of the current market position within the chain. "
The NSE Option Chain Colour System
The NSE option chain website (nseindia.com) uses the following colour conventions:
Call Side (Left) Colour Logic
• coloured background — typically light blue or grey. ITM calls (strike below current spot):
• highlighted in a distinct colour — typically yellow or bright blue. ATM call (strike at or nearest to current spot):
• white background. OTM calls (strike above current spot):
Moving down the call side from high strikes to low strikes: you start in white (OTM), cross through the highlighted ATM row, and enter coloured rows (ITM) as strikes move further below spot.
Put Side (Right) Colour Logic
• coloured background — typically the same colour as ITM calls. ITM puts (strike above current spot):
• same highlighted row as the ATM call (they share the same strike row). ATM put (strike at or nearest to spot):
• white background. OTM puts (strike below current spot):
Moving down the put side from high strikes to low strikes: you start in coloured rows (ITM), cross through the highlighted ATM row, and enter white rows (OTM) as strikes move below spot.
The Colour Boundary Moves With the Market
As Nifty moves during the trading day, the colour boundary shifts. If Nifty rises 100 points, strikes that were OTM calls become closer to ATM (or ITM), and the highlighted ATM row moves higher. If Nifty falls, the ATM highlight moves lower. The colour system is dynamic — it adjusts to the current spot price in real time. This means the ITM/OTM visual boundary on the chain is always current.
Using Colour Coding for Fast Navigation
The colour system allows three practical navigation shortcuts:
Finding the ATM Strike Instantly
Instead of looking for the strike closest to the current Nifty spot in the numbers, look for the highlighted row with the distinct colour. This is always the ATM strike. Your eye can find a colour contrast faster than it can scan numbers — the ATM identification takes less than 1 second once you know the system.
Assessing the ITM/OTM Balance
Glancing at how many coloured rows versus white rows are visible on the call side tells you roughly how far the underlying has moved from its recent range. If most of the visible call strikes are in white (OTM), the underlying is trading near or below the middle of the chain's displayed range. If many call strikes are in colour (ITM), the underlying has rallied significantly and the chain needs to be scrolled to show the relevant OTM strikes.
Identifying Key OI Levels Within Each Zone
Once you have located the ATM row and identified the ITM/OTM colour zones, you can quickly scan the OI column within each zone for the highest OI values. The highest OI in the OTM call zone = max call OI (resistance level). The highest OI in the OTM put zone = max put OI (support level). These two values, identifiable in seconds using the colour system, are the most important support and resistance levels derived from the option chain.
Broker Platform Colours May Differ
Different broker platforms use different colour schemes for their option chain views. Zerodha Kite uses a specific colour set. Upstox uses another. Sensibull uses its own. The underlying logic — ITM options are marked differently from OTM options — is consistent, but the specific colours vary. When you first use any new platform, spend 5 minutes identifying which colour indicates ITM on the call side and put side. Once established, the navigation speed is the same regardless of platform.
The Practical Impact of Colour Reading on Trade Speed
For an options trader who reads the chain multiple times per day, the colour-based navigation system is not a minor convenience — it is a meaningful time saver. A trader who must read the strike price number for every row to find the ATM takes 3–5 seconds to locate it. A trader who goes directly to the highlighted row finds it in under 1 second. Across hundreds of chain views per month, this compounds into a significantly smoother analytical workflow.
More importantly, the colour system prevents a category of mistakes: accidentally analysing an ITM option when you intended OTM, or vice versa. When the colour of a row is different from what you expected — when you are looking at a strike that should be OTM but has a coloured background — the visual discrepancy triggers a check. The colour system creates a passive error-prevention mechanism alongside its navigation function.
The option chain is designed to be read quickly. The colour coding is the chain's visual navigation system — built by NSE to help traders find the most relevant information as fast as possible. Use it as intended. Let your eye go to the colour contrast first, extract the key data points in seconds, and then decide. The traders who read the chain in 60 seconds consistently make better-informed decisions than those who spend 10 minutes struggling to find the ATM strike.