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How to use Open Interest in Futures and Options? || Sensibull & Opstra || Booming Bulls - YouTube
Channel: Booming Bulls
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My name is Anish Singh Thakur
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and open interest is a very hyped topic for the whole stock market industry
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Especially in options and futures those who trade.
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So it’s a very demanding topic
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I have already made videos on this,
But obviously, we need newer videos
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with new examples to understand
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Today, I gave market analysis as well
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So got one more chance,
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I'll give you one more stock
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And I'll analyze Nifty better and tell you.
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The best thing is that open interest data
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will not be of use always,
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But when open interest data
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combines with price action,
When you
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add these two,
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you get a 360-degree view
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Means, price action plus data analysis
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When both are combined,
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the output then is very good.
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So come on let's start
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This is going to be one of the best videos we have ever seen
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So please watch slowly
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and make time to watch.
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So look, first of all, I'll -
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Ok,
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though we will be using 2 software,
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2 applications
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Firstly, we are going to use Opstra analytics
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and Sensibull.
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Alright?
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I'll give the link for both in the description,
In this, there is no offer for you
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You have to pay the whole amount.
There is an offer in this,
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if you take, then GST and all goes
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Overall, a better price for you.
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You'll get the link in the description
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Come on let's start.
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First of all,
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I'll show you -
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first I'll open TVS motors for you.
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TVS motors' price action is made somewhat like this.
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Like how?
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Firstly, I'll show you in daily timeframe
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By looking at the daily timeframe, we understand that it gave a
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good movement, a wave number 2-
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breakout, one more breakout in daily timeframe.
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If we go to 1 hour timeframe,
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You get to understand by looking that here,
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there is a very beautiful
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Price action-based, like inverted head and shoulder
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You have got a breakout for tomorrow.
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This is one more stock for you
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for market analysis video
You can trade in this too.
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Now this will make a very good intraday plus swing trade,
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It gave a breakout
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So this happened based on price action theory
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This man, is a website named Opstra, you come to this,
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And i think you get this part for free
The one with future buildup
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you don't have to pay for this
You can make an account for free.
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Come here and click on the future buildup
Click on future buildup
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and write TVS Motor
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Now there is something written over here
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3% price increased in one day
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OI increased by 14%
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Long buildup
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5% price increased in 5 days
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And then also OI increased
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5 days mean
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1 2 3 4 5
This overall inverted head and shoulder it made
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And exactly tomorrow means
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If you see here, just this one on Friday,
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This on 1st October,
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In this,
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OI increased 14%
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What does it mean?
OK leave all that, look here
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Whenever you understand what is open interest
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Open interest means
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interest is rising in some stock contracts
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of contracts
Contracts are increasing in that
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Now, whenever price increases,
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When the price is moving upside and the open interest is also increasing,
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It is called long buildup
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Long buildup means
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new long is building-up there
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Or new long positions are creating
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New money is coming to the market
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We can say that some new traders are coming to the market
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New fresh money is coming to the market
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When open interest is increasing
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Means new positions are coming
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And if the price increases then it is called long buildup
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So I hope you now understand what is the meaning of open long buildup
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So nothing happens with just long buildup
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When you get long buildup plus price action
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So this is an extremely great combination
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So now you are getting to see
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What are you getting to see in TVS Motors?
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That we are seeing
So this will become a great swing trade
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That an inverted head and shoulder after giving a breakout
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got long on this day.
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Means it has a high probability
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that if we put below this stoploss
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and take long entry in this,
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We can get a good intraday trade tomorrow
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If the auto industry gives a good movement in the market tomorrow
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Or the day after tomorrow we could get a very good trade
So this is going to be a very good swing trade
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TATA Motors for you.
OK
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So how did we use in this?
You have to come to this software,
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Search for the stock you wish
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And check what happened in that
Was it your long buildup or short buildup?
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Like this, you can check
Alright
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So I hope this is clear to you.
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Now let’s get back to analyzing nifty
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What happened in nifty?
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What do we get to see in Nifty
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I'm coming to 15 minute timeframe
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Dude in Nifty, I get to see that
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in the past 4 days
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1 day, 2 days, 3 days, 4 days, 5 days
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The market is falling for the last 5 days
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Bear flag and pole is made then falls
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Then gives a movement like this.
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When I zoom out a little, then I know nifty is going in an uptrend itself
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It's an obvious matter
After giving a big movement upwards,
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it’s making it like this
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So this fall,
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Look carefully
One minute I'll show you
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This movement, is this a
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strong bearish movement?
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Or a weak bearish movement?
Is it a mild bearish movement or
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a strong bearish movement?
We don't know
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How could we know?
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What is the data behind this candle?
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You say
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Price is dropping
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and OI is increasing
So what will be made?
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Short buildup
That is strong bearish
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But let’s consider that if the price is dropping
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and open interest is also dropping
Means
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what will happen?
It would be long unwinding
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That is called mild bearish
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We don't know
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Come on let's check what happened in Nifty.
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Nifty is already up but still we just want to see Nifty only
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That’s why we’ll just write Nifty
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So do you see?
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OI dropped by 22% in one day
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Leave that
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If we see 5 days’ movement
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Then 5 days cumulative,
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Open interest dropped by 17%
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Open interest dropped, the market slid down
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Means it was a long unwinding
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Not short buildup
Long unwinding means
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it is mild bearish
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So tell me one thing, if we ever wish the market
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to make wave number 1 2 3
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Then how should be wave number 2?
Obviously,
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is it strong bearish or mild bearish?
It should be Mild bearish
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So what did I learn from this future OI data
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That man, this wave, the data in this,
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The 5 days’ data says that open interest in this
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has dropped, not increased
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If it increased,
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then it’s nothing to worry about
it’s nothing to worry about
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I mean it’s a matter to worry about for investors
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Means it can push down more below
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But we know that the data that's shown here for now
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Is saying that it was only and only
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Kind of a long unwinding.
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You see there was long unwinding in fin Nifty too
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So it’s not showing this one's because
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it needs a big number
It would have told if it was 2.5% or 2%
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If it was 1% here, then it would have told
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That's why number-
Otherwise, it would be written here long unwinding
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But it means long unwinding only.
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So by looking at open interest data,
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what did we learn?
that
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How the move is, strong or mild
It is a strong move in TVS Motors,
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long buildup here
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its long unwinding so this-
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Look maybe tomorrow market will open a gap-up and go under
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I didn’t-
I don't predict the future
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Is this data telling your future?
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It tells about the past
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It talks about the present and past
After analyzing the present and past data,
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you can trade with conviction
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If the market goes up tomorrow,
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And a long buildup is made tomorrow
Like the one-day price change
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You will see tomorrow in daytime that Nifty went 1.5% -1% up
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And OI increased
So what does this mean?
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This means that we are going to see a new high in the coming 5- 7- 10- 15 days
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Means we can't say exactly but we'll see a new high
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Because it will be a long buildup trade
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Now a but open interest data
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Sensibull
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Let’s come to Sensibull
It is a very useful software
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First of all, let’s see the option chain
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What do we get to know by looking at option chain?
That the highest
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buildup occurred here, brother
18500- this far!
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18000-
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this far call side
Resistance is developing that far there
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Means, it is an obvious matter
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Let’s come to open interest here
If we see here,
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what do we understand by looking here?
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That exactly on 1st,
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most buildups occurred here
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And in put, quite nearby 17500
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Nifty is already at 17532
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There is support there
Here, there is resistance
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The first resistance is at 17700
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And the second is -
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obviously it’s also here
But the 2nd highest-
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highest is at 18000
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In 500 range
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First 17700, then here
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So by looking at this we get to know that
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we have a lot of space to move
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The resistance is made
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The resistance is made the highest 18500
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18000 in the 2nd rank
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Then 17700 in the 3rd rank
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If we look at the support, then there is at 17500 and 17400
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So these are the support and resistance level
If you want to see in detail
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how to use this option chain
I'll put the link
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You watch the video for sure by typing Sensibull Booming Bulls
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The software is of great use
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And the same thing about multistrike OI
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Look at this, we can't say this for now
Both of them moved in the same way
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A move didn't come in both
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Therefore, Nifty is sideways
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Now let’s see tomorrow
I'll tell you this
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If tomorrow Nifty gives a breakout from above,
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And goes on
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And open interest in put keeps on increasing,
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And in call, it keeps dropping
Means its dropping on this red line,
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And increasing in put,
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Then it means strong bullish
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To understand in detail whatever, I have told
You have to watch this video
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It’s not easy to understand this
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Please go and watch the Sensibull video
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If you want to understand if tomorrow Nifty-
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If both started increasing tomorrow,
Then market will go in some range
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So if you want to understand how call put increases
Then please watch that video
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and you'll get it.
OK
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Alright guys
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So we added one more TVS motors for market analysis
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And we saw in Nifty according to data
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That there are chances that market may take a U-turn
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And we might see newer highs
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That we might see newer highs
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Maybe going a bit sideways, and up
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and sideways and up
You might see new highs in the coming time.
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Now the rest of the data changes tomorrow
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So we'll know tomorrow
I'm not saying that it will go up guaranteed
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But as per the data, it looks
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slightly weak bearish now
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This bearish is weak bearish right now
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Open interest decreased.
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Increased in TVS motors
OK
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Come on, as a homework
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The videos until now we gave on market analysis
Go and check that now
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You can make an account in this for free
Make an account in this too
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Pay later
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But remember this link
Use this only, of Booming Bulls
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You will get much better prices
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GST and all will be placed later
You get with GST included here
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Alright guys
So I hope you enjoy the
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videos now
Because I was travelling last month
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I wasn't able to upload some videos
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Now we'll do it in the right manner, Do more trading
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Read concepts,
Bring psychology videos
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I'll bring out a lot more content with you
But I want you to please share all these videos
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with all of your friends and like the video also if you enjoyed
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If you had fun watching this video
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Please and you guys always
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And you guys always comment
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Please let- please keep commenting
Let me know how you are feeling and everything
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And also, some people commented in my last market analysis video
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That brother this is not hidden bullish divergence
This is-
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this is bearish divergence
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No brother, you don't know
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There are so many kinds of divergences
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And people think that by learning a little about divergence you'll know to trade
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It’s not like that
So you were saying
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Guys look
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that was not bearish divergence, that is
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hidden bullish divergence and its
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making higher/lows and lower/lows
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That is the difference
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Hidden bearish and bullish divergence are 2 different things
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So please study this, google and learn
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And don't
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tell me that brother you are telling wrong
I'm not wrong, I upload videos
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so I think and upload only
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If I got something wrong, I'll tell you quickly in the next video
That I made a mistake
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Or I comment and pin
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No mistake occur dude
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We all carefully make these videos
We are professional people
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And all because of your support and love, we are at half-million subscribers
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Soon we will do one million as well
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Let’s take all along
OK
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OK guys thank you so much
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See you soon in the next video
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Bubye
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