StockPro | Market Update + F&O Lesson: What Open Interest Really Tells You

Stock Pro • 7 days ago

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What This Video Is About

The video discusses the current market situation, which is bearish, and provides an analysis using a self-developed system. The system indicates a strong bearish bias, supported by futures and options writing. The video also discusses support and resistance levels, options writing, market breadth, and the impact of FIIs and index futures on the market.

Major Ideas Discussed

  • The market has been continuously falling since August 3, with a last resort at 22186, and if crossed, the market can reach as low as 21750.
  • A self-developed system grades the Nifty, indicating a strong bearish bias, supported by futures and options writing.
  • The put-call ratio is -8.5, indicating a strong bearish sentiment, and the India VIX is negatively inclined, indicating an increase in volatility.
  • The open interest build-up has been heavily shorted, with a change of -20, and the options writing has increased.
  • The current spot price is 22600, and the maximum open interest strike price for puts is 21500, indicating a support level almost 900 points below.
  • The resistance is at 24000, and the market is due for a correction soon.
  • Only 14 stocks advanced, while 36 declined, and the India VIX has increased.
  • The FII index futures percentage long share of FII index futures position is only 9.9%, indicating a headwind for rallies.
  • The small-cap and mid-cap sectors have fallen badly, but these sectors can give returns of up to 20% in a single day when the market bounces back.

What to Watch Next

The video recommends keeping the following stocks on the radar: UltraTech Cement, Bharti Airtel, Federal Bank, SH Kelkar, ONGC, Dr. Reddy's, and Jindal Poly Films. These stocks have been consolidating for a long time and are expected to give good returns when the opportunity arises.