OI Pulse Consolidated User Manual Rev 08
OI Pulse Consolidated User Manual Rev 08
Contents
SECTION A 4
A. Login information 4
B. Home Page 5
C. Dashboard 6
D. Futures 8
E. Options 10
E1. OI Analysis 10
E2. OI Chart 11
E3. OI Statistics 12
E4. OI Spurts 14
E5. Options Chain 15
E6. Options Premium 15
E7. Multiple OI Chart 17
A. Global markets 19
Conclusion 70
Addendum 1 71
Multiple Window
Addendum 2 79
1. Futures/OI Analysis/15.30-EOD Data
2. Futures/OI Spurt
3. Futures/OI Chart
4. Futures/EOD OI Analyzer
5. Options/Options Chain- Cell highlighting
6. Options/Active Strikes OI
Addendum 3 103
1. Options/Trending OI
2. Futures/OI Buzz
3. Futures/Banks Analysis
Addendum 4 120
Select Period
Trending OI
Addendum 5 148
FII/DII Activity
Addendum 6 190
Big Oi Movement
Participant wise OI
Addendum 7 222
We consider OI as our God. The key to understanding the market sentiment lies in decoding the
information given by OI. This data reveals what the majority of market participants are doing at
the moment. If we can align our trade with the dominant sentiment of the market, it enhances
the probability of successful trades. Market pulse does exactly the same and makes the job
easier. We shall be analyzing the OI of both Futures and Options to get a hold of the market
pulse.
Uniqueness of OI Pulse tool
As discussed previously OI dataplays major role in determining the course of price movement of
any security, thus analysing it on a continuous basis is very important. In order to do so we must
know how OI data changes on a minute to minute basis. Unfortunately this was not possible
earlier for majority of the traders as they had to rely on the NSE website for the OI data. NSE
website publishes OI data with a lag of 3 minutes thus not enabling to get the true picture in
real time. However we have taken care of this issue while developing OI Pulse. On the options
chain page of OI pulse you get OI data “every minute”. This unique aspect of OI pulse gives
you an added advantage while analysing OI data.
A. Login information
Currently OI pulse tool is a web based application tool and can be accessed on
URL https://oipulse.com/signin.
In order to use the tool the first step is to create an account on the home page. Simply use the
option “Create an account” on the home page and sign up
B. Home Page
Once inside the home page you will see a sidebar on the Left hand side and under this
“Dashboard” information will be preselected.
On the Top RHS corner there are two options
C. Dashboard
The default option selected on the Home page is Dashboard. Under this option you will be able
to see how the Nifty and Bank nifty are faring with respect to important traded securities on
global level.
This page has candlestick charts of different global securities that may be plotted on any time
frame as one desires. Since these are full featured charts, any kind of technical analysis with
any indicator may also be done on them.
For Example: in the above chart you can see RSI on Crude Oil and VWAP on USD INR.
The Nifty 50 Future that is shown here is not Nifty Futures of NSE but that traded on SIMEX
(Singapore International Monetary Exchange). Since international players have access to both
NSE and SIMEX, the future prices on SIMEX have direct proportional relation with Nifty 50
futures of NSE. Also the timings of IND 50 (Scrip name of Nifty Future on SIMEX) is 06.30-22.30
hours IST, this will help you to do pre market analysis for present trading day and post market
analysis for next trading day as well.
At present you can see following global securities featuring on the dashboard
DOW Jones is said to be the “Mother of all Markets”. Any major change in the Dow Jones has a
major implication for our markets. Say for example if DOW falls significantly then there is high
probability that our markets may witness a fall too. Though nothing is guaranteed, there is a
high probability of this to happen.
Likewise Crude Oil and USD-INR too have their implications. It has generally been seen that
when Crude rallies and INR depreciates with respect to the US Dollar, our indices especially
Bank Nifty tend to underperform.
Such small clues can help you decide the direction of trade for the current trading session. The
purpose of the OI pulse dashboard is to present all the important global securities on a single
page to facilitate faster and responsive decision making.
India VIX can also be seen on the dashboard and that too will help to understand the market
sentiment.
We also plan to introduce the state of Global markets on the dashboard in order to strengthen
market analysis.
D. Futures
This section of the tool is dedicated to the analysis of Open interest of Future contracts. On
selecting this option we get following screen
D.1 Mode
Under this menu there are two options Live Data and Historical Data. Live data will stream
Future data directly from the NSE server while historical data option can be used to analyse
open interest (OI) data of previous days.
In section B we will explore how we can use this feature of the tool to analyse the market
sentiment
E. Options
Under this feature we shall be analysing the complex Options data in a simplified manner. For
this purpose there are 7 different sub categories
(i) OI Analysis
(ii) OI chart
(iii) OI Statistics
(iv) OI Spurt
E1. OI Analysis
This feature will present the OI data of a particular strike in a graphical form. We can see both
live market data as well as historical data.
In the following example 22500 strike of Bank nifty has been selected over a 15 min time frame
1. CALL OI Analysis
2. PUT OI Analysis
3. CALL vs PUT OI Analysis
In the CALL & PUT OI analysis chart we can see the variation of Price of the strike price along
with OI of that particular strike with price on one single chart.
This is a proprietary in house developed tool. The scales of this tool have been developed after
extensive research and have given wonderful trading results over the years. In section B we will
see in detail how to use the charts for taking a trading decision.
Also on the same page we can see comparative variation of Call and Put OI of the same strike
price.
a. Zoom
b. Restore Zoom
c. Line Chart-(the default option)
d. Bar Chart
e. Restore chart
f. Save image
E3. OI Statistics
This unique feature of the tool would enable you to get a holistic picture of the entire Open
Interest of both calls and Puts.
With this feature you can see OI of different Calls and Puts with just a single click. You can
analyse the OI of ATM strikes and see whether the CALLS are more or the PUTS. Also we can
catch a glimpse of whether CALL writers are dominating or the PUT writers and at what strike
prices.
For example in the above diagram we can see that OI of Calls is very high at 22500,23000 and
23500. Similarly PUT OI is appreciable at 22000,21500 and 21000. These high OI at these
strikes would enable us to find a range for the market.
Also on this page we can see the cumulative OI of all the calls and all the Puts. This would give
a hint whether the CALL writers are active or Put writers are active.
Another very interesting feature of the chart is that you can deselect either the CALL or PUT
from the chart and visualise the other option exclusively on the screen.
For Example if you want to analyse just the CALL options then deselect the Put OI button at
bottom of the chart and you will get only the Call Oi on the chart.
E4. OI Spurts
OI spurt is an important connecting dot of the market analysis. OI pulse quantifies the options
data into four different quadrants namely
1. Rise in OI-Rise in Prices
2. Rise in Oi-Slide in Prices
3. Slide in OI- Rise in Prices
4. Slide in OI-Slide in Prices
In these quadrants we will analyse the market sentiment on the basis of strikes appearing in
different quadrants and their respective LTP, % change in LTP, Change in OI and Volume.
E5. Options Chain
Options chain form the foundation of analysis of market sentiment. Though Options chain is
available on the NSE website but OI pulse tool has many added advantages.
1. OI Pulse fetched OI data on a minute by minute basis. This unique feature of the tool
gives you an added advantage as NSE website publishes OI data with a delay of 3
minutes.
2. The options chain page displays PCR Ratio on live basis, another unique feature of the
tool.
3. OI Pulse will provide historical Options chain data which is a unique feature of Oi
Pulse.
4. Options chain data here will also provide Implied Volatility (IV) data on Expiry days
for weekly expiries.
Example
In the above chart Put Premium option is deselected for better clarity.
Just focus on 21300 CE. it is an ITM strike and at the time of capturing this data the Spot price
was 22251.85.
Now 21300 CE is an ITM option and it should be trading at 22251.85-21300= Rs 951.85.
You can know the LTP of the strike price by selecting the LTP button on the screen.
This feature will enable you to find the best suitable option to buy. It will be a game changer for
you especially on Expiry days.
E7. Multiple OI Chart
This is a very flexible feature of the tool that represents variation in OI of different strikes. Use
this option to see the variation in OI of different strikes. You can select different strikes from the
drop down menu and plot them simultaneously.
VIX represents Volatility in the market. The market sentiment directly gets affected because of
VIX and can be seen in the price of the index. VIX is derived using OTM Call and Put option
premiums, thus its relevance for options trading is very high. In order to catch this essence, OI
Pulse tool represents the VIX vs Nifty and VIX vs Banknifty graphs as shown below.
SECTION B
In Section A we saw the basic features of the OI Pulse tool. In this section we will explore all the
major dots that we must analyse to decode the market. We will also see how the OI pulse tool
would be helpful in this regard.Once we are familiar with all the dots we will take an example
wherein we will decode the markets using OI Pulse tool.
A. Global Markets
B. Futures Open Interest
C. Options Open Interest
D. India VIX
E. Implied Volatility
F. Price Action
Before proceeding further it is very important to mention that there would be days where all the
dots would align themselves and give a unilateral indication but there would be days where
some dots would go against the majority. During such periods we need to discount such dots
from our analysis.
A very good example of this would be discounting of Global Markets from our analysis. Though
our markets would be aligned with global markets for the majority of days but there would be
certain days where domestic news would set the tone for the day and our markets may go
against global markets. Thus on days where we have major domestic economic/policy/news
events we must discount global markets.
Now let’s see all these dots in detail and how OI pulse would help you to analyse them.
A. Global markets
In this era of globalisation the world has become more and more connected and interdependent.
Global markets have considerable influence on our domestic markets, thus any Pro trader must
take them into consideration before taking any trade.
All these global securities feature on the dashboard of OI Pulse tool and can be seen
collectively. It would also be wise to analyse Asian Markets in the morning before our markets
open and the European markets around afternoon to get a better perspective.
Following table highlights the Opening and Closing time of major exchanges of the world.
Closing Time
Stock Exchange Country Opening Time (IST)
(IST)
Example of Direct relationship between Bank Nifty and Dow jones as seen on Dashboard of OI
Pulse
Consider the above example. The data shown is for date 15 Sep 2020. Just notice the
movement of Dow Jones and bank Nifty after 14.00 hours. Just observe the direct relationship
between DOW and bank nifty in this case.
As mentioned earlier there would be certain days where domestic events/news would set the
tone for the day and our markets may go against global markets. Thus on days where we have
major domestic economic/policy/news events we must discount global markets.
Thus observe the global markets on a continuous basis while decoding the markets.
B. Future Open Interest
Before we proceed further we need to have a crystal clear understanding of following concepts
For trading to take place there must be some underlying security. Whenever we trade stocks the
underlying security is the stock itself. A seller sells that stock and a buyer purchases that
particular stock. After a transaction is successful the stock is transferred into the demat account
of the new buyer from that of the seller. This is plain and simple. Just take note of the fact that
the maximum number of stocks that can be traded is fixed and is originally issued by the parent
company. However the situation is not the same in derivatives. We will be dealing with two kinds
of derivatives namely Futures and options. So let us take Futures first. In Future Derivative
Trading the underlying security is a “contract” that is issued not by any company or organisation
but by an individual who we know as “SELLER”. Another individual buys this contract.
Once a contract is written between original buyer and seller the Open Interest becomes one.
Now this written contract may be “traded” multiple times. Imagine the buyer wants to exit his
position, he will find another prospective buyer and “transfer” the contract that he originally holds
to the new buyer. In this transaction the number of active contracts in the market remain “one”
only but now the same contract has been traded “two” times. This number “two” is captured as
“Volume”.
In order to simplify things I’ll take an example. Consider a real estate developer, he builds a
house and sells it to you. If we think in terms of OI and Volume after this transaction both OI and
Volume are 1 and 1. Now let's say you don't like the house anymore and want to move out.
What would you do? You would find another prospective buyer and transfer the house in his
name. After this transaction the underlying security i.e the house still remains “one” but it has
now been “traded” “twice”. So Volume for this house would be “2” but the OI would remain “1”
only.
Now coming back to our markets the sellers and buyers create OI in the first transaction.
Thereafter the contract that gets created can be traded multiple times and these transactions
get recorded under “Volume”.
At any given time when you see a figure for OI of Nifty futures that reflects the number of
Contracts that are in the market and are being traded. Volume would refer to the number of
times the contract has been traded. Volume would always be greater than OI and never less
than it.
Now we also need to understand how OI increases and decreases. Whenever “sellers” write
fresh contracts and buyers buy them OI would always increase and when sellers buy back the
contracts they sold earlier OI decreases.
Now having understood the basic concept of OI and Volume we will understand the remaining 4
terms. For understanding these four terms we will take a practical approach.
Let us say it is Monday Morning and trading begins. There is no strong news in the market and
the general outlook is neutral. So market participants would also be neutral. Sellers would start
writing fresh contracts and sell them to prospective buyers in the market. OI would increase and
so would the volume as trading would be happening.
Now assume some positive but not so strong rumour comes in the markets. What would
happen? There would be a buzz among the buyers that prices may increase. They would start
buying more and more. Soon there would be a competition among the buyers to buy at the
earliest. Sellers on the other hand would also get cautious. So overall the demand would begin
to rise and supply would get constrained. However as the prices increase further sellers would
be tempted to write more contracts as they would be getting very good prices, so they would
also write new contracts in the hope that it is just a rumour and may be false and prices would
fall at end of the day. In this situation Open Interest would increase and so would the price. This
situation is known as “LONG BUILD UP”. It is characterised by rise in OI and rise in price.
Now assume it is 14.00 hours and the positive rumour that led to rise in prices is confirmed.
What do you think is going to be the state of buyers and sellers? Buyers would be on cloud nine
and begin preparing for evening celebrations because they know they are going to win big time
today, but what about sellers. Earlier in the day they were uncertain after rumour but high price
tempted them to write fresh contracts but now that rumour has now been confirmed….they
would panic..It would be a catastrophic situation for them. They would run to minimise their
losses. In order to do so they would need to buy back the contracts they had written earlier and
in this process they would offer any price that the contract holder(who now happens to be the
original buyer) would ask for. Once he buybacks the contract, he would book his loss to a
minimum and subsequently OI would decrease. But the price of the contract would increase.
NOw if another seller wants to close his position he would have to buy back the contract at this
higher level. The OI would further decrease but LTP would increase further. Likewise in this
manner the OI would decrease and price would increase. This situation is known as “SHORT
COVERING”. It is characterised by Decrease in OI and rise in Price.
Now let's assume it is 15.00 hours, the market has risen considerably and shorts have covered
their position and there are some original buyers who want to book their profit towards the end
of day. What would they do? They would sell their contracts which they bought in the morning.
In doing so the supply would increase and thus price would decrease. It would be a good
opportunity for the original sellers to close their open position too. Thus overall Price would
reduce and OI would also reduce. This situation is known as “Long Unwinding”. It is
characterised by Fall in OI and fall in prices.
Let us see how the OI pulse tool is able to capture this information.
The following example is of Bank Nifty Future OI Analysis for 24 August 2020 set on a 60 min
time frame.
We see that during the entire day there was Long build up. Towards the end of the day we also
saw Short Covering and then Long Unwinding.
Now let us see the price chart for that particular day.
Just match the timings of the OI Pulse data with the Price and see the magic.
Now having analysed this bullish scenario it would be relatively easier to understand the bearish
scenario.
Let us say it is Tuesday Morning and trading begins. There is no strong news in the market and
the general outlook is neutral. So market participants would also be neutral. Sellers would start
writing fresh contracts and sell them to prospective buyers in the market. OI would increase and
so would the volume as trading would be happening.
Now assume some negative but not so strong rumour comes in the markets. What would
happen? There would be a buzz among the sellers that prices may decrease. They would start
selling more and more. Soon there would be a competition among the sellers to sell at the
earliest. Buyers on the other hand would also get cautious. So overall the supply would begin to
rise and demand would get constrained. However as the prices decrease further buyers would
be tempted to purchase more contracts as they would be getting it at cheap good prices, so
they would also buy new contracts in the hope that it is just a rumour and may be false and
prices would rise at end of the day. In this situation Open Interest would increase but price
would decrease. This situation is known as “SHORT BUILD UP”. It is characterised by rise in
OI and fall in price.
Now assume it is 14.00 hours and the negative rumour that led to rise in prices is confirmed.
What do you think is going to be the state of buyers and sellers? sellers would be on cloud nine
and begin preparing for evening celebrations because they know they are going to win big time
today, but what about buyers. Earlier in the day they were uncertain after rumour but cheap
price tempted them to buy fresh contracts but now that rumour has now been confirmed….they
would panic..It would be a catastrophic situation for them. They would run to minimise their
losses. In order to do so they would need to sell the contracts they had purchased earlier and in
this process they would sell at any price that the contract buyer(who now happens to be the
original seller) would ask for. Once he resells the contract, he would book his loss to a minimum
and subsequently OI would decrease. But the price of the contract would decrease. Now if
another buyer wants to close his position he would have to resell the contract at this lower level.
The OI would further decrease but LTP would decrease further. Likewise in this manner the OI
would decrease and so would the price. This situation is known as “LONG UNWINDING”. It is
characterised by Decrease in OI and fall in Price.
Now let's assume it is 15.00 hours, the market has fallen considerably and longs have covered
their position and there are some original sellers who want to book their profit towards the end
of day. What would they do? They would buy back their contracts which they sold in the
morning. In doing so the supply would decrease and thus price would increase. It would be a
good opportunity for the original buyers to close their open position too. Thus overall Price
would increase and OI would also reduce. This situation is known as “SHORT COVERING”. It
is characterised by Fall in OI and rise in prices.
Let us see how the OI pulse tool is able to capture this information.
The following example is of Bank Nifty Future OI Analysis for 31 August 2020 set on a 60 min
time frame.
We see that during the beginning of the day there was a short build up. As buyers or the Longs
panicked there was Long Unwinding. Towards the end of the day we also saw Short Covering.
Now let us see the price chart for that particular day.
Just match the timings of the OI Pulse data with the Price and see the magic.
We need to understand that these four terms that we just understood need to be applied in the
context of the market. Short covering for example does not always mean that shorts are
covering their position to minimise their losses. On a bullish day shorts would cover their
position to minimise their losses but on a bearish day they would cover their position to book
their profits. Thus don’t go exclusively on the definition but analyse the market scenario in which
that phenomenon is happening.
BULLISH SCENARIO
The next step in understanding these OI interpretations is judging the strength of the
phenomena itself. For this you have to ask questions like is this Short Build up a strong one or a
weak one?
IN order to answer these questions you need to look at four corresponding parameters which
OI pulse presents to you readily-”LEVEL BREAK” ,“VOLUME”,”LTP” & “Change in OI”
Any phenomenon that is accompanied with large volumes and significant change in OI & price
will be a strong phenomenon while those with small volumes and insignificant change in OI and
LTP may be kindly ignored. If any phenomenon would be accompanied with corresponding level
break then it would add to its strength.
OI
INTERPRETA VOLUME LEVEL BREAK Change in LTP Change in OI STRENGTH
TION
D.H.B (DAY
HIGH Significant Significant STRONGEST
HIGH BREAK)
LONG BUILD
UP HIGH - Significant Insignificant STRONG
LOW - Insignificant Insignificant WEAK
D.L.B (DAY LOW
HIGH Significant Significant STRONGEST
BREAK)
SHORT
BUILD UP HIGH - Significant Insignificant STRONG
LOW - Insignificant Insignificant WEAK
STRONGEST
D.H.B (DAY (DURING
HIGH Significant Significant
HIGH BREAK) BULLISH
SHORT
SCENARIO)
COVERING
HIGH - Significant Insignificant STRONG
LOW - Insignificant Insignificant WEAK
STRONGEST
D.L.B (DAY LOW (DURING
HIGH Significant Significant
BREAK) BEARISH
LONG
SCENARIO)
UNWINDING
HIGH - Significant Insignificant STRONG
LOW - Insignificant Insignificant WEAK
Now if you are clear with these basic concepts you are ready to proceed further.
Till 10.30 we see that OI pulse has given Long Build up as interpretation. Now we see that we
have D.H.B level break along with a very high volume and significant OI change. However the
price has not moved much. This clearly points towards a Strong Long build up. Now shorts have
to break this volume in order to take the market lower.
Shorts are decently active as we see that LTP has not gone upwards significantly and they are
thus supplying at higher levels.
In the next one hour we see “Short Covering: though a weak one. This is the first sign of
weakness from the shorts and a\presents an opportunity for the Longs to take the market
higher.
During the next one hour (11.30-12.30) Longs took advantage of the weakness of the shorts and
led to Long build up. This is a very interesting Long buildup. Even with a very small change in OI
the longs were able to take the price significantly higher and even break the Day’s High. The
volume was also considerable.
12.30-13.30 was a comeback period for the Bears as they came back with significant price
reduction with relatively insignificant change in Oi which meant longs were being cautious.
In this situation next hour becomes crucial.
13.30 to 14.30 was a comeback for the Bulls and we witnessed a Significant Long build up.
Now the stage was set for the bears to panic as the day belonged to the bulls and they couldn't
take the markets lower. Consequently they ran for covering their position and we saw the
Strongest possible Shortcovering rally in the last one hour where even the Day High was taken
out.
Thus this kind of analysis would have given you the confidence to trade at different time periods.
The most effective way would have been to use a smaller time frame Future OI analysis to enter
a trade once you see a trend emerging on a larger time frame.
Suggestion for Expiry Day: Analyse Future OI of past 10 days with OI pulse to decode the
activities of big players dominating the market. This would really be helpful for trading along with
expiry moves.
In order to analyse the OI of options one thing that needs to be kept in mind is that OI of both
Calls and Puts have to be considered simultaneously. The OI of options will reveal very
interesting information.
Simplifying it further if we identify the price levels around which there is a maximum OI of Calls
and Puts we can know the range of the markets. The price levels around which there is
maximum OI of calls is the level which Call writers believe would act as a stiff resistance level.
Similarly the price levels around which there is maximum OI of Puts is the region which Put
writers believe would act as a strong support level.
This information can be analysed from option chain data but with much effort. In order to simplify
this, OI pulse tool presents this information in graphical form.
Simply use the “OI statistics” option as per instructions in section A. Following screen would
appear if we select Banknifty as underlying security
Simply looking at the length of the bars at the right and left hand of ATM strike would tell you
where there is major support and resistance.
The strikes with big Green bars on RHS of ATM have high OI, thus CALL writers expect that
these price levels will not be breached. Similarly on LHS of ATM strikes we see big Red bars
which represent price levels which Put writers expect will not be breached.
Suggestion: The strikes with high OI will be usually dominated by Sellers. If at any given
moment if the price breaches these price levels then these writers (CALL or PUT) would run to
cover their position and we would witness strong Short Covering. That time would be a good
time to buy the options for a short time and gain from the price appreciation.
C2. OI spurt and Market Direction
In the previous section we saw how to judge the overall OI at a basic level. Now in addition to
this we must analyse the “CHANGE” in OI. OI Pulse tool analyses this “change “ in OI through
the “OI spurt” feature.
After selecting the options as given in Section A following page would appear on the screen
Here you can see that data is compiled in 4 tables and different strikes appear under these
quadrants. We call these tables “Quadrants”. If you see the headings of these tables you would
find something that is familiar with what you have already learnt in this manual.
Lets see what these quadrants are and what do the strikes appearing in them represent
Also if you see CALLs appearing in this quadrant with strength then it points that markets
may witness an upward movement. Similarly if PUTS appear in this quadrant with
strength then it points that markets may witness a downward movement.
So as a buyer of Options always focus on strikes appearing in Q1. If they are appearing
with more than 50 % change in LTP and OI then it is likely that the Premiums of these
strikes may rise further and thus they may be considered for buying provided all the
other connecting dots are also giving the same signal.
Also if you see CALLs appearing in this quadrant with strength then it points that markets
may witness either a downward movement or may just consolidate.. Similarly if PUTS
appear in this quadrant with strength then it points that markets may witness an upward
movement or may just consolidate.
Now let’s see an example for OI spurts and how this get captured by OI Pulse
Consider the OI spurt data of Bank nifty for 14 Sep 2020 for weekly expiry of 17 Sep
2020
We see that Put options with more than 50 % change in LTP and more than 50 %
change in OI appear in Q1. Similarly Calls with adequate strength appear in Q2. Also Q3
saw OTM Put options. Q1 witnessed Long build up with Puts, Q2 witnessed short build
up with CALLS and Q3 witnessed Short Covering of OTM Puts. It simply points out that
the market would have surely fallen. Now let's check the price of Bank nifty on that
particular day
The OI spurt data if followed on OI Pulse during market hours surely would have helped
to capture this fall in the market.
As you can see that the selected date is 14 Sep 2020. Now focus on the time frame 09.30 to
10.30 AM.
On the CALL side what do we see
1. Short build Up:
2. Now let us assess the strength of this Short build up. If we look at change in OI, it is
quite significant.
3. Also the price drop is quite appreciable.
4. Along with this we see the D.L.B breakout pattern.
From 11.30 onwards we saw that CALL writers started strengthening their position as the Short
Build up on the Call side became more and more aggressive. On the Put side option writers
covered their position and we saw a very strong Short Covering rally.
As the day progressed we saw premiums of Calls decreasing on a continuous basis whereas
premiums of Puts saw a continuous surge in price throughout the day on account of short
covering.
Thus identifying strong signals is very important and OI pulse makes the job easier for you. The
crucial aspect in using this feature would be to identify strong signals which we now know.
If you consider the following example (Date 25 Aug 2020) we can see that the last one
hour saw some major short covering rally wherein the OI decreased drastically. What do
you think could be the reason and implication of this action?
Though we do not know the reasons but certainly the shorts got scared of something
and covered their positions in a major way. This would certainly have implications for the
next day. If the World markets are supportive the next day then it would make sense to
go Long as we do not expect any selling pressure in the initial moments.
The market played exactly in the same manner the next day at opening.
Just see how the market behaved in morning hours.
Suggestion: Morning trades is an advanced form of trading and in the example shown above
OI was one of the major dots to take the trade.We recommend traders to take morning trades
only after obtaining a certain level of proficiency.)
The second major utility of the 60 minute time frame is that it is very useful to take trades in the
second half of the trading session as it would help to determine the major trend for the day.
Thus overall we recommend to use different timeframes in order to grasp the market sentiment.
This is a unique feature of OI Pulse tool and has been developed after extensive trading
experience. We have developed a unique system wherein you would be able to see the
variation of price and open interest in pictorial form. This would simplify the analysis for you.
In order to use this feature follow the instructions to use “OI CHARTS” in section A of the
manual.
Let's take an example. Following is the Option OI chart for strike 22600 for 14 Sep
Below this I have zoomed images of both the Call and Put OI analysis that I have obtained
using OI pulse tool
On this chart you see that we have plotted both OI and LTP of the selected strike price along the
Y axis. Along the X axis we have used time. The scales have been set as per propriety in house
trading experience formulas.
We have observed that whenever we receive a strong crossover of “X” shape type in either
CALL or PUT then momentum builds up in options premiums and change in OI of both calls and
puts. By “X” shape we mean that LTP & OI lines should cross each other at a steep angle.
In the example given above, at 13.30 we saw a “X” shaped crossover happening on the Call
side. Now what does it imply? It means that the price is decreasing rapidly and Open interest is
increasing rapidly. This means there is a strong Short build up. In such a situation it has been
observed that the corresponding opposite Option would witness strong Short Covering i.e it’s
LTP would increase rapidly and Oi would decrease rapidly.
In this case the 22600 Put witnessed a rapid increase in premiums and drop in OI. It also saw a
crossover though after 15 mins and thereafter you can see that the Put option premium
increased from Rs 384 to Rs 408 and then to Rs 618.
Thus the basic essence of this feature is that it helps you identify Strong Short build up and
Strong Short Covering. In our personal experience Strong Short covering moves are very
powerful and are a great opportunity for the option buyers. Also this crossover may be used to
identify an opportunity to write options if you are a seller. The only catch is that Short Covering
moves are not long lasting and must be caught at the right moment. OI pulse tool helps you hit
bulls eye on this.
Suggestion: In our personal experience “X” shaped crossovers give best results when observed
on a 15 minute time frame though one may use any timeframe as per his/her convenience.
C5. Strike Selection with help of OI Pulse tool
There are some basic thumb rules that we follow for strike selection and OI Pulse would further
help us to select the strike.
In general we should avoid OTM strikes for trading, especially buying. The reason for this is that
they do not have any intrinsic value and are susceptible to rapid changes in the premiums which
may be detrimental for an option buyer. The % rate of change of the capital invested would be
very high in OTM strikes and should be avoided.
It is better to trade with ATM or ITM options if you are a buyer. With the help of OI pulse tool
you can know which strikes are relatively cheaper and which one are relatively expensive.
Just use the “Options Premium” feature of the tool and you would get an answer instantly.
For example consider the following chart
In the above diagram you can see the 22200 CE which is an ITM strike has a very low premium
as compared to its neighbouring strikes. Now if signals come wherein you should buy Call’s then
22200 CE would be an excellent buy. If the Banknifty rises then the appreciation of premium
would be very high in 22200 CE as compared to other strikes.
So use this feature before selecting the strike.
IV is one of the most important but least understood aspects of options trading. So before
moving ahead and learning how to use IV let's discuss some basics about IV.
IV is presented as a complex mathematical and statistical tool derived out of another complex
mathematical model known as Black Scholes Model that looks like this
All this is something that is good to know and prove useful if you want to show off or win an
argument in a discussion held during parties or dinner tables. But if you want to really use it for
trading then you need to know the utility and the implications of IV.
Extrinsic value is applicable on both ITM and OTM strikes. It is dependent majorly on 2 factors
Both these factors are determined by an Option writer while determining the price at which he
would write an option. Both these factors collectively figure in Extrinsic Value of an options
Premium.
To put it simply, whenever we hear that Option premiums are high or options are very expensive
then it actually means that “Extrinsic Value” is high. Similarly when we hear that Options
premiums are very cheap or low it actually means that its Extrinsic Value is low. Quite often we
would also hear the term “Premium Erosion”. This also points towards reduction of Extrinsic
Value of option. The Intrinsic value is always fixed. It is “0” for OTM strikes and difference of
Spot and Strike for ITM options.
Extrinsic Value of the options is directly reflected as Implied Volatility thus it is very very
important to understand this if you want to trade them seriously.
So put simply IV is nothing but a reflection of Extrinsic Value of an option. Lets
understand this more clearly.
Now imagine yourself as an Option writer and consider the following hypothetical example.
Bank Nifty Spot=22500
Now if you have to write a 22000 CE option,at what price or premium would you write it?
Clearly since it is an ITM option you would demand a minimum of Rs 500 i.e 22500-22000 or
Spot -Strike price. But would you actually sell it at just Rs 500? Clearly NO. Any Seller with a
sound mind would demand some extra premium over and above this Intrinsic Value. You would
determine this extra premium based on above two factors i.e Risk free interest Value and Risk
value.
Risk free interest Value is nothing but the value you would easily get by placing the margin that
the exchange would block in F.D of banks or any other safe instrument.
Risk Value is something that an option seller would determine based on market conditions.
Let's say that there is negative news floating in the market and signals are that the market may
fall or just consolidate and there is no chance of the market to rise further.
In this scenario (A) Option seller would determine the premium as
And IV will be something that would be directly proportional to 5 & 50. Lets represent it as
IV(A)= F(5,50)
Now consider a different situation with the same strike and spot. But there is positive news in
the market and there is a high probability that the market will rise. Now what would you do if you
want to write a Call option? You will make some calculations and research to determine upto
what price the market would climb higher. Let's say that your best estimate is that market may
climb by at max 300 points then in this situation (B) you should determine the call option
premium as
So the same call option now becomes expensive. Though the intrinsic value remains the same
but extrinsic value has risen significantly.
Now IV will be something that would be directly proportional to 5 & 500. Lets represent it as
IV(A)= F(5,500)
Now you have IV(A)=F(5,50) and IV(B)=F(5,500), which IV do you think would be greater?
Certainly IV(B)>IV(A)
This is how IV values are determined. It is a direct reflection of Extrinsic Value of options that is
further majorly dependent on Risk Value perceived by an option seller.
So we may simply say that IV levels are a direct reflection of Risk seen by Option sellers.
I hope all this makes some sense till this point. Kindly go through this again if things are not
clear.
So I would simply summarise it as higher the IV higher the risk seen by the Option seller in
writing the option and lower the IV, lower the risk seen by Option seller.
Now we have seen what IV levels mean for option sellers. But we need to see this from an
Option buyers view point too to get a clear idea.
Consider the above example only. In case A we saw that there was negative news in the market
and there was a possibility of the market to fall or consolidate. Option premiums were very less
and IV was relatively low. What can you say about the demand from the buyers? If you are an
informed trader would you buy Call options in such a situation? Certainly NO, but there would
be some buyers always. Overall we can say that demand would be low.
So we can now say LOW IV implies less perceived risk from sellers and less demand from
buyers.
Now let's revisit scenario (B) where there was positive news in the market. Option seller
demanded a high premium on account of more risk so IV was high. What can you say about
demand from buyers? Would you like to buy options in such a situation? Certainly YES. Thus
we can say HIGH IV implies more perceived risk from sellers and more demand from buyers.
IV levels may be obtained from Options chain page on OI pulse tool. With the OI pulse tool you
would be able to get IV levels on expiry days too. Something that is new. Also you would be
able to see Options chain page for historical dates.
So now that we understand IV and from where to see the values let's move on to IV levels.
While analysing the IV levels you need to focus upon two things. One is that we need to see the
IV of Calls and Puts on both the side of Options Chain i.e for both Calls and Puts simultaneously
and secondly focus upon the magnitude of the levels.
1. IV Levels 10-10
When we see low IV levels and the relative difference between them is very less then
this situation is very good for Trend moves and market may witness Trend moves.
2. IV Levels 10-15
When the relative difference between IV levels on Call and Put side is of the order of 5
and both the IV levels are in this range then we will witness premium erosion on the side
with high IV levels. If Calls have higher IV then Calls would witness more premium
erosion and if Puts have higher IV then Puts will witness higher Premium Erosion. These
would be very tricky days.
3. IV Levels 20-20
These days would see complete premium erosion on both the sides and it would be
better to stay away from positional trades on such occasions.
4. IV Levels 20-30
This is a good situation for option buyers. If the market moves in direction of the option
with higher IV then it would see higher Premium appreciation. But if the reverse happens
then we will witness Premium Erosion.
5. IV Levels 40-40
These are very volatile times and it would be perfect to stay away from such volatile
markets especially if you are a beginner.
These IV levels have been developed after extensive trading experience and are very effective
in getting best results out of derivative trading.
So always take IV into consideration before trading with options. By applying this simple
concept your trading would reach a new level.
E. VIX
VIX or the Volatility Index is the next dot that we need to connect in order to decode the market.
If you have understood the concept of IV well then understanding VIX would be quite easy for
you. As you may observe both IV and VIX have one thing in common i.e “VOLATILITY”. Though
it may be analysed in different manners but the best way to see VIX if you are an options trader
is that it is an indicator that measures the “Risk perceived by majority of market
participants”. This is the reason it is sometimes also referred to as Fear Index as well.
So if we have to understand what VIX actually means, we can think of it as an indicator that
quantifies the risk perceived by the majority of market participants. Much clarity can be gained if
we go through the procedure of determining it. Like IV it is also computed through complex
mathematical formula that looks like this
But we don't need to go through this formula. All we need to know is what variables the
mathematical formula takes into consideration and how are they related to VIX.
So there are two major factors that determine VIX are
(i) Premiums of OTM options (both Calls & Puts) of NIfty ( and not Bank nifty) of monthly (and
not weekly) near and far months expiry
(ii) Strike price of OTM options
VIX is calculated by adding up the contribution of individual strikes. Mathematically it would look
something like this
VIX= F(OTM CALL 1)+ F(OTM CALL 2)+.......+F(OTM PUT 1)+F(OTM PUT 2)+.........
Now F(OTM option) is directly proportional to Option Premium and inversely proportional
to Strike price.
Now we know that the premium of Put is relatively more than that of calls. What can be said
about the strike price of OTM Put options. If 22500 is spot then OTM call would be 22600 and
OTM put would be 22400.
So for Put options the Premium is more but strike price is less thus Puts have a greater
weightage in determining the VIX. Always keep this factor in mind while analysing VIX.
Now let us examine a bullish scenario. What would happen if the market is trending
upwards?
Premiums of OTM Puts would decrease and that of Calls would increase. As the markets move
higher and higher Strike prices of OTM options for both Calls and Puts would increase as a
result overall contribution of Puts would decrease and so would the VIX. Thus VIX would
decrease and index would rise.
Likewise we have summarised correlation between index prices and VIX which is as under
Though VIX is computed entirely on the basis of Nifty options but it has significant implications
for bank nifty as well. The reason behind it is that Bank nifty is the major constituent of the Nifty
index and thus indirectly connected to VIX.
OI pulse tool simplifies the job of analysing VIX and index prices. We have developed a unique
charting technique based on our extensive trading experience. In this chart we plot VIX and
Price along the Y axis and time along X axis. The scales have been set on the basis of
extensive trading experience.
Use the “VIX and Index” feature from the menu of OI pulse tool and select the date. Following
charts would appear.
The most important feature of these charts is they instantly let you know when the scenario is
going to turn bullish or bearish. This can be identified through crossovers of VIX and the index.
Whenever the two lines cross each other in “X” shape pattern with steep angles the probability
of momentum build up in the prices would increase. Thus this would be a major indication for
taking a trade.
Thus OI Pulse simplifies your job of analysing VIX and index price movement.
F. Price Action:
This is the last dot to connect in decoding the market sentiment. You may use any chart settings
with any timeframe of your choice to analyse the price movement. Analysing the price
movement in the backdrop of all the other dots would give you ample confidence to trade. You
may use indicators of your choice to analyse the price movements.
However an important indicator that we strongly suggest is that of “VOLUMES” on the Futures
chart. In order to identify a directional sentiment of the market you must see large volume
candles of similar colour on your chart. And if they appear consecutively then it is a string signal.
Say for example if the price drops for two consecutive candles in a 3 min time frame and we see
large red colored candles of volume greater than 50K each then it suggests that the market is
trying to head lower. If all the other dots align in downward movement then go forward and
punch orders on your terminal, don't think twice.
You are totally free to use any chart settings and any indicators. The data signals generated by
OI pulse tool would supplement any chart settings.
This is the manner in which we connect the dots and decode the market sentiment. OI pulse
tool simplifies this job as it presents to you complex information in a very simplified manner.
Thus we strongly recommend you to use all the features to connect all the dots. Using this tool
would boost your confidence and take your trading to the next level.
EXAMPLES
Now that we have covered most of the features of the tool and basic theoretical concepts let's
move on to see how you can actually take a trade while we walk through some examples.
Example 1:
Date 14 September 2020
Instrument: Bank Nifty
From now on I would start looking for signals on smaller time frames,other features of OI
Pulse and on the price chart.
The period between 13.15 to 13.30 was the beginning of the Golden movement
Now let us look at the OI Chart and look for hints on the 22500 strike.
Observe the crossovers on the above two diagrams. Around 12.30 we saw a “Short
buildup” crossover on the Call side. And after that the probability of the Short Covering
increased on the Put side. Around 14.15 the “Short Covering” crossover happened on
the Put side. A very good opportunity for buying Puts.
Price of the PE option increased from 451 to 553, an increase of 100 points in just 15
minutes.
These types of signals generated by OI pulse would give you the confidence to take
trades without fear.
Kindly note that there is a delay between the crossover on Call and Put side. What could
be the possible reason for this? The answer lies in Implied Volatility (IV) which we will
check shortly.
Signal 4 : OI Spurt
Analyse the four quadrants in OI Spurt. Though this data is at the end of day, but during
the period after 12.30 the picture on OI spurt was clear. PE’s with more than 50 %
change in OI and more than 50 % change in LTP appeared in Q1. CE’s with more than
50 % change in OI and more than 50% drop in LTP appeared in Q2.
OTM PE’s which saw major short covering appeared in Q3.
This is a strong signal of the market moving in the downward direction. When all the 3
quadrants clearly form then the probability of successful trade is very high and that
happened in this case.
Signal 5: VIX and Bank Nifty
We know that a rising VIX favours Bearish markets and a falling VIX favours bullish
markets. So what happened in our case? Let's observe
Observe the strong crossover at 14.06. Just observe how VIX rose and the price
dropped. And focus on the time. All this was a strong signal to go on the short side.
Signal 6
DOW
Just observe the DOW 30 min chart for that particular day. Although DOW was on the
rise during initial; hours but after 13.00 hours it too saw a fall. So overall it supported the
fall during the second half.
So we saw that there were 5 strong signals that favoured taking the trade. As we
mentioned earlier there are going to be some days where some dots will not go in your
favour and on these days we need to discount them. So let's observe them as well.
Implied Volatility
As we have discussed earlier in the manual that premium appreciation happens best
when there is a relative difference of almost 10 points between IV’s of Calls and Puts on
the options Chain and the side which has higher IV see’s faster appreciation if price
moves in that direction.
So if we were expecting a fall in this trade then we would expect IV’s on the Put side to
be higher.
Let's check what actually happened
As you can see, the IV on the Call side is 43.17 and that on the Put side is 40.39. Earlier
during the day IV on the Put side was even lower around 34. This dot was against all
others today and because of this the Premium appreciation on PE side was limited. Had
IV on Put side been higher we could have gotten more premium appreciation.
So now let's combine all the dots and see on our chart where a suitable entry was
possible.
Lets see the price chart again
On this chart entry at 14.03 was highly desirable, majority of dots were in the favour and
there was a failed attempt by the longs in the previous two candles to take the market
higher. The futures fell from 22450 to 22105 after this. This was a great opportunity to
buy a Put or short the Future. We made great money in this trade.
Hope you will be able to connect all the dots and catch similar opportunities whenever it
happens again.
Example 2
17 Sep was Weekly Expiry day. Let us analyse how the OI Pulse tool helped us decode
the market.
However OI Pulse tool captured an unusual market activity on the Options OI Analysis
page
The very beginning of the day saw a very strong Short Build up on the 22500 Call side,
with 570950 contracts being written in the opening 15 minutes. Corresponding Put side
saw Short Covering. So bears had set the mood for the day. Though there was an
attempt by the bulls to take the market higher but it was not strong enough.
As can be seen on 15 min tf every attempt by the longs to take the market higher was
resisted by short sellers who sold at higher levels.
Just notice the extremely strong Long build up on Put side and Short build up on the Call side. This
means that since future price is at 22500 and there is massive OI on CALL side and throughout the
day CALL writers dominated these writers would make every attempt to push the future prices down
and thus PE prices must rise.
And it happened. After this the Future prices came down and PE prices jumped from 70 to 200.
This could have been possible only with thorough analysis of OI and OI Pulse made the job much
easier.
MAGIC OF IMPLIED VOLATILITY
Just observe the following sentences carefully…
On 17 Sep after 14.30 BN made a high of 22506 and then low of 22338.75 around 15.00. A drop of
167 points but 22500 saw an increase from 76 to 200. This strong movement could have been
possible only if IV is supportive.
On that day IV on PE side was higher and that played its magical role.
Getting IV data on expiry day is a unique feature of OI Pulse and would be of great help on expiry
days.
OI pulse also generated additional signals for that trade but these were the major ones.
VIX crossover happened shortly after 14.30
Options Premium chart too gave impressive signals during that day.
https://www.youtube.com/channel/UC0kKxsSzUbJdbfRo89CuxIw/featured
Conclusion
The entire ecosystem of Trading stands on the foundation of “Probability”. What it means is that
nothing is guaranteed in the Trading World.There is NO HOLY GRAIL and we firmly believe in that.
What we intend to do through our analysis is to align with the Collective Thinking of the majority of
dominant Market Participants. This is one of our core objectives to achieve. OI Pulse would simplify
this process and help you catch the Pulse of the market. By following this process you would have
ample number of opportunities to take trade. If your analysis is correct you would be successful in
the majority of trades. There would be some slippages as well as there is no Holy Grail and we don't
claim OI pulse to be one. But with a high probability of winning and winning big In every trade the
outcome over a series of Trade would be wonderful and a life changing experience for you. Don't
judge your performance in one or two trades but take into consideration a series of trades. Thinking
and trading on such lines with OI pulse as a constant supportive factor you would learn to Trade
with confidence and without any fear and that is something that we want you to become.
Regards
TEAM OI PULSE.
ADDENDUM 1
As mentioned earlier, our endeavour is to simplify the complex market analysis for you. Thus
working in this direction we aim to add new features in OI Pulse regularly that would make the
job easier for you.
Latest version of OI Pulse now has a new feature called “MULTIPLE WINDOW”. Let's take a
look at this new feature and how it would enable you to take a trade.
The new feature appears in the menu bar on the left hand side of the home page as shown
below
With this new function you can see four different features of the OI Pulse simultaneously on one
single screen. Thus there is no need to open different tabs simultaneously and switch from one
tab to another to analyse the market.
The default screen of Multiple window would look like the picture below
We have kept the system pretty flexible and you can choose what features you want to see
together.
For this just click on the Red button on the top right corner and you would get multiple choices
from the Futures and Options functions of OI Pulse menu bar.
Select one of the features to appear on that particular screen and then do simultaneous
exercise for 4 screens as per your choice or select the default options as such.
Now let’s see how this new feature can enable you to take a trade
All the four were for Bank Nifty and in “Live data” mode.
E. Lastly now since the probability of downward movement of Future was there I expected
Premium Appreciation of 21500 PE on account of Short Covering rally which may occur. And
what better feature than our OI Chart can tell this. So I referred that feature and it worked
wonders
At 14.00 hours OI Pulse recorded a sharp increase in OI on CALL side with a drop in price, thus
a Short Build up and a Crossover of “X type” just about to happen on the Put side. Now with
Futures and Options data also pointing to further fall in the market there was not even an iota of
doubt that the premium of 21500 PE would rise further and it did from 423 it went to 487 and
then making a high of 536.
It was a winning trade decoded by OI Pulse.
Now the best utility of Multiple Window is that I saw all the features together on one screen and
made a decision very quickly to enter the trade.
With the new function you are able to see all the features together and make informed trading
decisions swifty.
This new feature would enable you to take trades more confidently and swiftly. Hope you will
enjoy this new feature.
We shall be coming up with new features regularly to enhance your capabilities.
Thanks
Team OI Pulse
ADDENDUM 2
As mentioned earlier, our endeavour is to simplify the complex market analysis for you. Thus
working in this direction we aim to add new features in OI Pulse regularly that would make the
job easier for you.
Latest version of OI Pulse now has the following new features that further simplifies the complex
market data for its users.
1. Futures/OI Analysis/15.30-EOD Data
2. Futures/OI Spurt
3. Futures/OI Chart
4. Futures/EOD OI Analyzer
5. Options/Options Chain- Cell highlighting
6. Options/Active Strikes OI
Let us examine all these features in detail and how they can be used in demystifying the
markets.
This latest feature on the OI Pulse would enable you to capture the true change in Open
Interest (OI) for the day.
Now one may wonder if we are able to see the change in OI data on a Live basis during
the day, what is the necessity of this feature. Now in order to understand what and why
of this aspect let us have a look at the phenomenon through the lens of OI Pulse.
Now pay specific attention to the Total OI and Time column in the above example that is for
Bank Nifty Future( Current Month) and for 19 Nov 2020.
As you may see that there are two values of OI. One is from 15.15-15.30 and other is from
15.30-EOD. What we see as live data on the screen and NSE website during market hours till
15.30 is “18,10,050” as in above example, but NSE makes some adjustment in the OI data after
trading closes and publishes the final OI after a few hours. This adjusted OI data as published
by NSE is what OI represents as 15.30-EOD data which is “17,20,600” for the day. There is a
significant difference between two figures.
The disparity between these figures is much more in case of stock Futures. Take for
example SBIN
The primary reason for this adjustment lies in the trading methodology adopted by
Institutional Investors. The manner in which big players like FIIs trade is different from
normal retail traders. We trade directly through a broker while for an institutional investor
there is one more intermediary known as a “Clearing Member (CM)”. Usually bg players
have many brokers and to manage all these brokers they have one CM.
During the day different brokers carry out trades on behalf of Institutional Investors and Clearing
Member confirms to the Exchange that this particular trade is carried out on behalf of the
Institutional investor by the Broker or Trading Member (TM). Till the time CM gives confirmation
the exchange counts this trade to have been carried out by the broker in its individual capacity.
Now exchange gives time to the CM to confirm this trade till 16.15 which is beyond market
hours, thus this is the primary reason behind adjustment of Open Interest for the day.
Let us try to understand this activity through an example.
Let us say there is a big Hedge Fund that trades in Indian markets. He appoints any clearing
member/custodian etc for his trading let us say Goldman Sachs. Also he has two brokers let us
say Zerodha and Samco. Now let us say that Zerodha bought 1000 lots of Bank Nifty Futures
for Hedge Fund yesterday and Goldman Sachs, its custodian confirmed to the exchange that
this trade was actually carried out by Zerodha on behalf of Hedge Fund. So its position is 1000
long at the start of the day. Now let us assume the market begins to fall around 13.00 hours and
SAMCO tells the Hedge Fund manager that the market is likely to fall further and thus advises
him to exit his position. Hedge fund manager gives him a thumbs up and SAMCO (and not
Zerodha) sells 1000 Future lots. Now the CM i.e Goldman Sachs should ideally confirm to the
exchange that the Hedge Fund has sold 1000 lots of Future and squared up its Long position of
yesterday but it doesn't and plans to inform the exchange after market hours. In this case the
exchange would assume that SAMCO has created fresh short positions in the market and thus
increases the OI whereas in actual the OI has actually decreased as the Hedge Fund has
squared off its position. Now when at 16.00 hours Goldman Sachs informs the exchange that
the trade done by SAMCO at 13.00 hours was actually carried on behalf of his hedge fund client
NSE would make the adjustments in Open Interest and that would get reflected on NSE
website. OI Pulse would automatically update the EOD Open Interest data.
A key takeaway from this understanding is that in readjustment OI always decreases and
never increases.
So now having understood the reason behind adjustment of Open Interest let us focus upon
Impact of this EOD data.
2. Futures/OI Spurt
This feature of OI Pulse is of significant importance to those who want to invest in stocks. The
basic concept of OI Spurts of Futures is similar to the OI Spurt concept explained in Options in
the user manual.
This feature may be accessed in following manner
Further we need to select from following options
Live Data is for viewing intraday data whereas Historical Data shows previous 2 months data.
Historical data may be viewed for any date from drop down availability.
Also the “Search” option may be used for analysing data of a particular stock.
After selecting the options we can see the following results on the screen.
Here also we may see 4 quadrants just like in Options OI Spurt.
Long Build up
Short Build up
Short Covering
Long Unwinding
The only difference here is that this data is for the stocks futures, the analyses would remain the
same.
A brief analysis is represented here.
a. Long Build Up: In this quadrant would appear those stock futures which see a rise in OI
and rise in Price. This quadrant represents a zone where the demand surpasses the
supply. This simply means that the buyers of these stock Futures expect a further rise in
the prices. So though the prices have increased and the stocks may appear expensive
but they actually represent a good buying opportunity.
Also this option may be used to explore the Support Zone. On any particular day for a
stock whenever we see significant Long Build Up (high rise in OI and price) then the
price levels of that particular day (VWAP to Day Low) would become a strong support
zone. So if the price comes back to this zone then it may represent a good buying
opportunity ,provided the OI doesn't decrease.
b. Short Build Up: In this quadrant would appear those stock futures which see a rise in OI
and fall in Price. This quadrant represents a zone where the supply surpasses the
demand. This simply means that the sellers of these stock Futures expect a further fall in
the prices. So though the prices have decreased and the stocks may appear cheap but
they actually represent a good selling opportunity rather than buying.
Also this option may be used to explore the Resistance Zone. On any particular day for
a stock whenever we see significant Short Build Up (high rise in OI and fall in price) then
the price levels of that particular day (VWAP to Day High) would become a strong
resistance zone. So if the price comes back to this zone then it may represent a good
selling/shorting opportunity ,provided the OI doesn't decrease.
c. Short Covering: This quadrant represents a zone where the Shorts or sellers of Futures
are actually covering their position. The possible reason for this could be that they are
booking their losses. Whenever someone shorts a Future he/she expects the price to fall
further down so that they may buy it again later at a lower price. But if the prices rather
than falling further begin to rise then the sellers might want to book their losses. In such
a situation the OI would decrease and price would increase further. This short covering
rally may represent a buying opportunity but it is only for a limited time period. When
price further rises then some Longs may also like to book their profits. Thus this
quadrant should be used with great caution to identify Long opportunities.
d. Long Unwinding: This quadrant is mainly used by big players for hedging. Thus big
players may be hedging their cash positions through futures sometimes and it is very
likely that such futures may appear in this quadrant. Thus it is advisable for retails
traders to avoid stock futures appearing in this quadrant.
It may be stressed again that stock futures appearing in these four quadrants are just
opportunities and to convert these opportunities into trade we need to connect other dots as
well. So use this feature to identify opportunities.
3. Futures/OI Chart
This new feature of OI Pulse helps to make the analysis of Futures data for Nifty/Bank Nifty and
Stock Futures much easier as we can see it graphically. The analysis that we saw in tabular
form in OI Spurt feature can also be seen via graphical form.
The uniqueness of this feature is that for Bank nifty and nifty we can see data for all the 3 series
namely
i. Current Series
ii. Next Month
iii. Far Month
There is another unique element in this feature. As you scroll along the lines of the graph the OI
and price interpretation would also get reflected. Check the same line graph with this feature as
below
You can observe in this graph that the red line is OI and black line is Price (Bank Nifty Future).
We know that Short covering happens whenever there is a Rise in Price and fall in OI. If you see
at 11.45, the highlighted portion represents Short Covering as in the previous 15 minutes the OI
decreased and Price increased. Also we see a crossover happening. The scales have been set
based on years of experience and Artificial Intelligence based systems. This represents a good
opportunity to go Long and it would have been a great scalping opportunity at this juncture.
Thus overall this feature of OI pulse would help you to analyse OI data for intraday trading
through a graphical interface.
4. Futures/EOD OI Analyser
The previous feature of OI chart was for analysing intraday data, however to get a better
perspective it is important that we analyse EOD data on a daily basis too. Thus to cater to this
necessity we have this feature in OI pulse.
On selecting one of the drop down options you will get the EOD OI status along with price
variation as shown below
Like in OI chart the same line form may also be seen in bar form by selecting “Bar chart” option
in top RHS corner, that would look as under
Similar set of rules as explained earlier may be used to analyse the data on an inter day basis.
While analysing the inter-day data it is very important to know the Day’s high and Low of any
particular day. The price level we see on the charts is the adjusted closing price. In order to
know that particular day’s high or low switch to the detailed view through “Show Detail View” in
the menu bar of this feature
On selecting this option you will get the detailed data for almost 2 months.
This tabular data would have all the information about price (open/high/low/LTP) and OI. OI
interpretation would also be there to simplify the data analysis. This feature would give many
insights about current trading day especially if it is a Expiry Trading day.
Options chain feature is a basic element of OI Pulse but in the new version we have added a
new feature of cell highlighting in order to make decision making fast and accurate.
In this new feature the cells with highest activity will get highlighted on the Call and the Put side
respectively.
To simplify, OI Pulse will highlight the cell on the CALL and PUT side of options chain where
there is
● Max OI
● Max OI Change
● Min OI Change
● Max Volume
The highlighted cells would help you make analysis in a quick manner and identify strikes where
there is maximum activity. The detailed analysis of Options chain has been explained earlier in
the manual.
This new element is part of an endeavour for continuous improvement of OI Pulse.
6. Options/Active Strikes OI
This is a unique new feature of OI Pulse that would help you to determine the direction in which
the market is most likely being headed.
On entering this feature you can view it for live market or historical analyses over any time
period from 5 mins to 60 mins. Use below option to select the time element
After selecting this mode you would get two graphical representations. One is “Active Strike
change in OI” and the other one is “Active Strike Sentiment %”.
These diagrams are by default in Line Chart form as shown below
However they may also viewed in Bar chart form by selecting the option from Top RHS corner
as shown above. Any portion may also be zoomed in/out using other options in the Top RHS
corner box. The bar diagram would look like this
Now let us proceed further to understand the concept in a bit detail. The common underlying
element in both these diagrams is “ACTIVE STRIKE”. So what is this?
During the day we see that some strikes see more activity in terms of Volume/Change in OI than
others as the majority of the buyers and sellers are present and trading in these strikes. Any
major changes in these strikes gives important clues about market sentiment and that is what
we must know. However keeping a tab of such strikes manually is very cumbersome. Thus this
is where OI Pulse comes to your rescue. The unique AI based OI Pulse identifies the most
active strikes, analyses the data and presents it to you in a simple graphical form.
So now having understood the basic concept of Active Strike let us proceed to understand its
application. We will use the Nifty Future contract and date of 24 Nov 2020 as an example.
In the above example black line represents change in OI of Puts and the red line indicates
change in OI of Calls. What this graph actually tells us is that after the market opened, there
was a rapid increase in OI of Puts as compared to Calls. So the active Puts were written
aggressively as compared to active Puts..so what does this indicate? It indicates that Put writers
are very confident that this market is not going to fall and may rise. Though the Calls also saw
an increase but it was at a very low rate. But such a stark difference in the rate of change of OI
of Puts as compared to Calls only indicates bullishness.
At 11.05 as shown the change in OI of active Puts is 61,09,706 and that of calls is 13,96,293, a
difference of order of 5X which can only occur in bullishness.
Also note down the time period of 13.05 to 14.30 as shown below (obtained using zoom feature
of OI pulse)
The Puts increased whereas the Calls decreased. That means that Call writers began to cover
their short positions and continued it till the day end. Towards the end of day Put writers also
unwinded their positions and booked their profits as shown by the graph.
Now let u proceed to the second graph of this feature, “Active Strike Sentiment %”. This
feature also captures the essence of the market trend as seen in the previous graph. It is more
sensitive representation of active strikes.
Here also we saw that it kept on increasing and was above 157%. This is absolute bullishness.
Now it is very important to understand how to trade in such situations. If you think that we must
jump and buy calls whenever you see bullishness then that is not the case. This is just
sentiment and we must switch to the chart and look for buying opportunities at a certain level.
Here as you can see in following graph
Though the sentiment is bullish it would make perfect sense to buy a call whenever the price
makes a dip to any support level. As can be seen in above chart of Nifty on 24 Nov at 14.10
there was a retracement till the supertrend levels and it was a great opportunity to enter the
market.
Thus these features of OI Pulse would give you the market trend and direction. They would tell
you whether to go for buying calls or puts. In order to enter a trade you must switch to your chart
and look for a good opportunity.
Hope these new features of OI Pulse would help you to decode the markets further and develop
an edge. Our effort will be to bring in more user friendly features in OI Pulse to help you
succeed.
Regards
Team OI Pulse
ADDENDUM 3
Continuing with our promise to simplify the complex market analysis we bring following new
exciting features that would help you in taking successful trades.
1. Options/Trending OI
2. Futures/OI Buzz
3. Futures/Banks Analysis
Let us examine all these features in detail and how they can be used to demystify the markets.
Options/Trending OI
This feature of OI Pulse would give you an absolute edge to analyse the Open Interest
Data of Options of different strike prices. We know that as the market makes a move,Call
and Put writing accompany such moves. If we are able to see exactly where and how
much Options writing is taking place that would give us confidence to take trades along
the direction of the trend. Also whenever the trend of the day reverses then also we will
witness it in OI data of options.
Thus the broad objective of this feature is to know whether Call or Put writers are
dominating and where exactly are they writing options. From this information we can
deduce where the market is likely heading and take trades accordingly.
Let us learn initially how we would access this feature and its basic elements.
You may select as many strikes as possible from the above pop up box that would appear when
you select the “Change Strike Prices” option.
We will have a short discussion on which strikes to select shortly, so keep on reading.
1. Call OI : This shows the Total Cumulative Change in OI of all the selected
strike prices of Call Options during the day during the selected time interval.
2. Put OI : This shows the Total Cumulative Change in OI of all the selected strike
prices of Put Options during the day during the selected time interval.
3. Difference in OI: This is the difference of Change in OI of selected Calls and
Puts options. Mathematically it would be {Change in Put OI - Change in Call
OI}.
Though it is written as Change in OI but it is actually the difference of Change in
OI and not the total OI.
4. Day High/Low Diff in OI: The difference would be either positive or negative and
would start getting reflected after 9.16 AM. There would be two different notations
available under this label. “Day High Break” and “Day Low Break”.
Day High Break: If during a selected time the difference of Put and Call change
in OI increases more than the difference in the preceding time period then this
option would be highlighted as “Day High Break”. E.g in the above figure the
difference in OI at 9.30 is 18,41,675. At 10.30 this difference increased to
63,49,375. This is certainly more than the previous difference thus it gets
reflected as “Day High Break”. Now if you observe during the entire day the
difference in OI was less than 63,49,375 so we didn't get any new “Day High
Break ''.
Day Low Break: If during a selected time the difference of Put and Call change
in OI decreases more than the difference in the preceding time period then this
option would be highlighted as “Day Low Break”.
Take into consideration following figure
E.g in the above figure the difference in OI at 9.30 is -13,06,250. At 10.30 this
difference decreased to -14,75,575. This is certainly less than the previous
difference thus it gets reflected as “Day Low Break”. Now at 12.30 the difference
further decreased to -20,03,525. Thus it is again getting reflected as “Day Low
Break”. During this day the change in OI kept on decreasing and it was getting
reflected under the label.
5. Sentiment: This element would reflect the sentiment of the market. It may be
Bullish or Bearish. If during the day more Puts are written as compared to Calls
then it means that writers are more comfortable in writing Put options than Calls
thus market is unlikely to fall down. So we may assume that market sentiment is
Bullish. So it would be reflected as Bullish under the sentiment.
Similarly if more Calls are being written than Puts the Difference in OI would be
negative which would mean that the market is unlikely to go higher. Thus the
market sentiment may be assumed to be Bearish which would get reflected
under the Sentiment column.
The processed information may also be viewed in graphical format if we unselect the “show
detail View”. This graphical information will be shown as under
Under the Trending OI chart you can see the Change in OI of Call and Put options. The
Trending OI sentiment would show the difference of Change in Put Options OI and change in
Call Options OI.
Now having understood the basic elements let us proceed to understand the idea behind this
feature.
We have repeatedly stated that the information conveyed by OI is very important to know the
sentiment of the market.
Let us proceed with a discussion on how would you expect the Open Interest to behave on a
Trend Day? For sake of simplicity let us assume it is a downward trend day.
On a downward trending day an Options writer would be very comfortable in writing Call options
especially OTM ones. Options buyers would be interested in buying Put options. So we would
expect Open interest of both the Calls and Puts to increase. But certainly the increase in Open
Interest of Calls would be much greater than that of Put options as it would be driven by sellers.
This would be visible in Total Open Interest of Calls as well as Change in OI of Calls of that
particular day. But for intraday analysis it is better to focus on Change in OI rather than Total OI.
So certainly as the market gets more and more bearish the Change in OI of Calls would be
much much greater than that of change in OI of Put Options. The relative difference would keep
increasing during every downmove.
Which Strikes should we consider for analysing Trending OI?
On a bearish Trend day, Call writers would focus more and more on OTM Call strikes and Put
option buyers would focus on OTM Put Strikes. Thus we should look at strikes on both sides of
the ATM strike price while analysing the data.
OI Pulse simplifies the job for you as the AI enabled algorithm selects the strike prices on its
own for the analysis.
Now we know that on a Bearish Trend day as the prices moves down, more Call Writing
continues in OTM strikes. So if we see this continuously over a long time frame then we can
think of proceeding ahead on the “Sell on Rise” strategy wherein we will look for buying Put
options whenever the market makes a retracement provided other Connecting Dots are in
favour.
Following is the Trending OI chart of Bank nifty for that particular day
We see that at 10.30 we saw Day Low Break but there was no follow up at 11.30. But at 12.30
we saw a major rise in Call OI as compared to a negligible increase in Put OI. This meant clear
Bearishness as more Calls were being written at important strike levels. This would have given
a good confidence to look for a shorting opportunity. Lets jump to price chart of that day and see
what happened at 12.30
We see that at 12.30 the price closed below the VWAP with a volume >50 K and RSI was less
than 40. Now this is a good opportunity to short. But it would have been better if we wait for one
more confirmation of another bearish candle along with a volume of 50 K. The 12.39 Candle
was exactly what we were waiting for. Now at that juncture we had OI supporting us with
Bearish candles accompanied with Volume >50 K, Price below VWAP, Red Supertrend and RSI
less than 40. A perfect shorting opportunity and Sell on rise. It happened thereafter.
Now let's switch back to the previous Trending OI window and see what happened at 13.30. The
CALL OI increased substantially from 37,84,950 to 51,98,650 while PUT OI decreased from
17,81,425 to 7,12,300. What else do you want. CALL writers are getting aggressive and Put
writers are running to cover their losses.
The whole idea lies in analysing the relative increase/decrease in Change in OI of Calls and
Puts. The more stronger this relative difference is, the stronger is the signal strength.
But certainly the only thing to be kept in mind is that this is just one Connecting Dot and we
need to look at other dots too before entering a trade.
OI Buzz
This new feature is actually a Heatmap of the major stocks of the indices and would provide a
picture of how Open Interest has changed with respect to prices of individual stocks. Thus it
would be a ready to visualise OI analysis of individual stocks of both the indices viz Nifty and
Bank Nifty.
The data is available on Live basis during the market hours as well as on Historical basis.
This feature may be accessed in following manner
Once the data is selected we will have heatmap of individual stocks in front of us
If you scroll the mouse over any individual stock a pop up window would appear that would
convey the OI Analysis for that stock.
In the above example we see that Axis Bank has undergone a Short Covering Rally today with a
2.12% rise in price. Likewise information about all the stocks can be known. The data can also
be downloaded in three different formats by using the menu button on top RHS corner as
indicated by the arrow.
The downloaded file would have all the information about price change collectively as shown
below
The heat map of Nifty would show all the information about 50 constituents of the Nifty Index as
shown below.
This feature may be used to determine the day that went by and what can be the implications
for the next particular day.
BANKS ANALYSIS
This feature is dedicated exclusively for the analysis of Bank Nifty stocks. It analyses the Open
Interest and Price change of 6 major Banks which have maximum contribution in Bank Nifty.
This feature may be accessed in following manner
After initial access one just need to select Time Frame for Live or Historical Data as shown
below
On selecting this option following information would be displayed on your screen
Likewise we can read the information for all the Banks and know how they are performing
individually with respect to the previous day and also in the selected time period.
Analysis of these banks on an individual basis would help to know the strength of the market
sentiment. If all or majority of the banks point in one direction then Banknifty index may move
strongly. If however there is diversion in their individual performance then Bank Nifty may
consolidate or make some irrational one candle moves.
Hope these new features of OI Pulse would help you to decode the markets further and develop
an edge. Our effort will be to bring in more user friendly features in OI Pulse to help you
succeed.
Kindly subscribe to our youtube channel for related videos on all features of OI pulse. Our
channel may be accessed via following link
https://www.youtube.com/channel/UC0kKxsSzUbJdbfRo89CuxIw
Regards
Team OI Pulse
ADDENDUM 4
With encouraging feedback from active OI Pulse users we believe that our vision of empowering
Retail traders by enhancing their knowledge is on the right track. Certain features have provided
life changing experiences for such active users. Thus continuing with our mission we intend to
simplify more things for our users. In this Addendum we shall explain new features added and
elaborate more about the “Trending OI” feature that has actually proved to be the flagship
feature of OI Pulse for Intraday trading.
Continuing with our promise to simplify the complex market analysis we have added a new
element in already existing featureOI Statistics called “Select Period”
Let us first examine OI Statistics/ Select Period feature first and then see how it can be used
while we elaborate more about Trending OI.
OI Statistics feature has already been explained in previous versions and its details may be
seen there. Still we would revisit some basics.
This feature may be accessed in following manner
Once we select the feature we get following options
This unique feature of the tool would enable you to get a holistic picture of the entire Open
Interest of both calls and Puts.
With this feature you can see OI of different Calls and Puts with just a single click. You can
analyse the OI of ATM strikes and see whether the CALLS are more or the PUTS. Also we can
catch a glimpse of whether CALL writers are dominating or the PUT writers and at what strike
prices.
The data can be seen for the cumulative Open Interest of different strikes or for the change in OI
for that particular day in both Live Market as well as for historical Data.
For example in the above diagram which is OI Data for Bank Nifty Future on 18 Feb 2021 we
see that strikes 37500 & 38000 have highest Call Open Interest while 35000 & 36000 strikes
have highest Put Open Interest.
Though it gives a broad idea about support and resistance but conveys a little information about
how the trading day went and what would be its implication for the next day.
In order to prepare for the next day we must know how and where OI changed today. For this
use “Change in OI” feature on the menu of OI Statistics.
In the above diagram you can see we have plotted “Change in OI” while in the previous diagram
we plotted “Total OI”. Here we see clearly that Call Writers have dominated the day. Call writers
have written close to 34,00,000 call options while there has been negligible Put writing. This
data compliments the overall Open Interest which shows total CALL OI at nearly 1,00,00,000 is
much more than cumulative PUT OI of 80,00,000. Ths it is clear that at the end of day Call
writers have a dominance. The “Change in OI” plot also shows us the levels at which Call
Writing has happened. Thus gives us a hint that tomorrow in absence of any external influence
Call writers would love to eat premiums and thus would resist any rise in the market. Thus any
rise should invite sell off in case we get a Gap Up. This would hold valid till the previous day
high is taken off.
Now the new feature of OI Pulse would give us added advantage for analysing the data. If we
are able to analyse the data of change in OI of the last one hour then it would be very useful for
us. This new feature gives us this flexibility.
So we may analyse the data for above mentioned time periods. This feature would be very
helpful for intraday trading as we can see exactly where the action is happening. On expiry day
this would be a very useful tool in the arsenal.
Trending OI
Now let us switch to the Trending OI feature and analyse it in more detail.
The basic details of this feature have been elaborated in previous Addendum but let us revisit
some basic elements of this feature
● The main idea behind this feature is to know how Options sellers are placing their
positions in the market at any given time and who (either Call or Put writer) is dominating
at the moment. This information plays a very important role in identifying the correct
trading opportunities.
● This feature is focussed primarily on the Change in OI of Calls and Puts rather than
their absolute OI. Information about absolute levels of Open Interest can be accessed
via OI Statistics and Options Chain feature of OI Pulse.
● Information about change in OI is the most dynamic and essential element to enter a
trade with high probability of success.
● OI Pulse has an inbuilt AI driven system that selects important strikes for analysing the
change in OI data. Thus the user need not worry about selecting the strikes manually,
though you can always change them manually too.
You can select different time intervals and different instrument names for Live or Historical Data.
We shall analyse the Live Data for reaching some conclusions.
We shall be analysing data for a 60/15 min time interval for Bank Nifty. Present example is for
16 Feb 2020.
1. TIME:
It reflects the time interval one has selected. Read the table from bottom to Top rather than Top
to bottom as shown by the arrow.
2. LTP:
It represents the Last Traded Price of Bank Nifty Future at end of Time Interval.
The figures appearing under this column represents the Change in OI with respect to previous
day OI of the selected strikes. Please pay attention to the work “Change in OI”. This would
represent the cumulative Change in OI of selected strikes and not the absolute numbers.
Let us clarify this here with more elaboration. The above data is for 16 Feb 2021. The Strikes
selected for analysing are
These strikes have been automatically selected by the AI system of OI Pulse and are the ones
that would see maximum action. By the end of 15 Feb 2021 the cumulative Call OI of all these
strikes was 10,00,000. At 9.30 in the morning this cumulative OI changed to 15,96,250.
So what is the change in OI? It would be 1596250-1000000=596250. So what you see on the
table is change in OI and not absolute cumulative OI.
Hope the point that we want you to understand is loud and clear.
Now let us proceed further and understand what other information is conveyed by Trending OI
1. Difference in OI :
Mathematically
Just observe under Call OI the figure mentioned is -11,73,100 (negative). This simply means
that Cumulative OI at the end of Day reduced by 11,73,100 from the previous day. Difference in
OI would be calculated as
There would be two options appearing under this column. These would be
Day High Break would appear if the Difference in OI at a particular interval is positive and
greater than Difference in OI of immediately preceding time interval.
comparison is made between present and immediately preceding time interval data.
Arrow 1 compares data at time interval 10.30 and 9.30. At 10.30 we see that the Difference in
OI is 22,94,275. It is higher than 5,59,125 and highest difference OI of the day, thus is would get
reflected as Day High Break
Now let us focus on Arrow 2 which compares data at time interval 11.30 with that at 10.30. At
11.30 Difference in OI is 23,12,475. It is higher than immediately preceding value 22,94,275 and
highest value of the day, thus it again gets reflected as Day High Break
Now observe Arrow 3 which compares data at time intervals 12.30 & 11.30. AT 12.30 Difference
in OI is 22,66,525 while at 11.30 the corresponding value was 23,12,475. Now this is LOWER
than preceding value, thus nothing would appear in the Day High/Low Diff in the OI column.
1. Thus for the message Day High Break to appear three conditions need to be fulfilled
2. Difference in OI should be a positive number
3. Difference in OI of selected Time interval should be higher than corresponding value in
preceding Time interval
4. Difference in OI of the time interval should be the highest value of the day.
5. On similar lines the message Day Low Break appear when following conditions are
met
6. Difference in OI should be a negative number
7. Difference in OI of selected Time interval should be lower than corresponding value in
preceding Time interval
8. Difference in OI of the time interval should be the lowest value of the day.
Just try to figure out the messages in following table on your own based on above mentioned
rules and concept would be crystal clear to you
Now having understood when these messages appear it is time to understand what do Day
High Break and Day Low Break signify?
We would come back to this topic again once we cover the last Column of Trending OI i.e
Sentiment.
5. Sentiment
This column of Trending OI suggests whether the outlook of the market is Bullish or Bearish
based upon changes in Open Interest during the day.
It would show Bullish always when the difference in OI column has a positive value and Bearish
whenever the Difference in OI column has a negative value.
Now having understood the basic concepts it is high time to know how to use this information for
trading. For this we must understand the significance of data suggested by Trending OI.
;****************************************************************
Do not trade exclusively on the basis of Trending OI
;****************************************************************
It is one of the major dots to connect but not the only one. Do take into consideration other
factors like Price levels,Volume,VIX, IV, Global Markets etc before making an entry. However
information analysed through Trending OI shall help you identify scenarios ranging from weakly
bullish/bearish to extremely bullish/bearish. But certainly this would highly increase the chances
of a successful trade. So let us begin
When the Market is Bullish what do you expect Options Sellers to do?
They would certainly like to write more Puts than Calls during the day. So if that is the case then
on any day when market outlook is Bullish then we expect the change in OI of Puts to be more
than the change in OI of Calls.
To put it simply
Thus by virtue of this simple rule any situation when Diff in OI Column of Trending OI shows a
positive value the outlook is Bullish. But this is very simple and naive. The probability of a Long
Trade in this scenario would be very less.
Just observe that at 12.30 the Sentiment is simply Bullish without any Day Break.
Also observe the price chart of the corresponding day at 12.30.
Would you enter a trade at this juncture? It might face a resistance at Day’s High. Also we do
not see any significant Put Writing. Rather more calls were written than Puts in the last 15
minutes.
So though it is showing bullish but still odds are low in favour of a long trade.
Let us consider the price chart for this example
Just observe that at 10.45 we have price above VWAP and getting a moderately Bullish
scenario as per Trending OI. Thus any further up move with volume would confirm the Bullish
setup.
We would like to reiterate that Trade one should enter a trade when the majority of the dots are
connected. Here in this example at 10.45 apart from Trending OI data we got a strong Marbuzo
type bullish candle with Volume > 50 K and RSI too jumped above 60..thus many dots in favour.
Now we have learnt how to identify bullish and moderately bullish scenarios with the help of
Trending OI. The beauty of this tool is that it can also help you identify extreme Bullish
scenarios as well. Still we would again emphasize that these are just scenarios, look for other
factors like price levels,volume,RSI, Global Markets, VIX etc before entering a trade. What
makes these scenarios as extremely Bullish are the favourable reward risk ratio.
We can have two cases where the outlook is extremely Bullish and we will discuss them
separately.
So the lesson learnt is that in a simple Bullish scenario without any additional
information wait for more confirmations.
So we have seen a simple bullish scenario. Now let us identify a moderately strong Bullish
scenario based on Trending OI.
It would be based upon the information conveyed in Day High/Low diff column in OI. For this
we need to understand the significance of information first.
We get a Day High Break only when the difference between Put & Call Change in OI is
maximum. This simply means that we have more numbers of Puts written in the day and now
they are being written at a faster rate than the Calls.
So the key advancement over plain vanilla Bullish scenario is that Puts are being written at a
faster rate than Calls now. This is certainly a more or moderately bullish scenario.
Just consider the following example of Bank Nifty 15 Feb 2021 and focus upon time 10.45
We see that at 10.45 both Puts and Calls were written but certainly more Puts were written as
compared to Calls as a result of which we saw a Day High Break.
With the new element of “Select Period” in OI Statistics we can see exactly where the Options
are being written that would prove out to be very useful.
The above change has also been explained in the following diagram.
Let us consider the price chart for this example
Just observe that at 10.45 we have price above VWAP and getting a moderately Bullish
scenario as per Trending OI. Thus any further up move with volume would confirm the Bullish
setup.
We would like to reiterate that Trade one should enter a trade when the majority of the dots are
connected. Here in this example at 10.45 apart from Trending OI data we got a strong Marbuzo
type bullish candle with Volume > 50 K and RSI too jumped above 60..thus many dots in favour.
Now we have learnt how to identify bullish and moderately bullish scenarios with the help of
Trending OI. The beauty of this tool is that it can also help you identify extreme Bullish
scenarios as well. Still we would again emphasize that these are just scenarios, look for other
factors like price levels,volume,RSI, Global Markets, VIX etc before entering a trade. What
makes these scenarios as extremely Bullish are the favourable reward risk ratio.
We can have two cases where the outlook is extremely Bullish and we will discuss them
separately.
In such a situation We would still get a fresh Day High Break. However the nature of this new
Day high break would be somewhat different. IN this case The CALL OI would actually be less
than the CALL OI figure of immediately preceding time interval while PUT OI shall be higher.
Let us see example and try to understand the point made here
In situation 2 we got both Bullish as well as Day High Break also in Situation 1 we got both.
Kindly pay attention to the respective CALL & PUT OI columns.
In situation 2 Put OI @ 27,01,875 increased from 23,90,425 meaning there was an increase in
Put writing. Thus Put writers are confident about up move.
Also in situation 1 PUT OI further increased to 29,08,775 from 27,01,875 thus showing the
confidence of Put writers about their belief of up move.
In situation 2 the CALL OI actually increased from 19,28,000 to 19,53,025. Though the
increase is small as compared to the rise in the number of PUT OI still it shows that there are
some CALL writers who believe that the market may not move up thus making Bullishness
only Moderate. But in situation 1, CALL OI actually decreased from 19,53,025 to 19,06,700.
What does it show? It means that some call writers are running away and unwinding their
position thus Bullish outlook is strong. More is the unwinding more is the strength of Bullish
outlook in this case.
In such a situation if other factors like Price,Volume,RSI,Global Markets favour we may get
a very favourable reward.
Let us take an example of Bank Nifty 15 Feb 2021. Here is the price chart till 11.15 AM
2. The “Day High/Low Diff in OI” column has to show Day High Break
Here let us consider the Bank Nifty situation on 12 Feb 2021. First we shall consider the price
chart till 10.30 AM. We see that at10.30 we got an upside move with volume.
Now let us also see what Trending OI said on that day till 10.30
If you see we got continuous Day High Break till 10.30 and also there was price candle
confirmation, so Trending OI supported the Bullish move strongly.
Thus we see that Trending OI in this situation was used with price action to enter a trade that
gave good results.
So now we can summarise our learnings for Bullish scenarios as under
So having summarised these findings we would still repeat that Trending OI data has to be
analysed not in isolation but in conjunction with other major connecting Dots like Price,
Volume,RSI, Global factors etc.
If Trending OI shows Extreme Bullishness but RSI is above 80 or there is a major resistance
level nearby do not enter the trade. Wait for RSI to cool down or Price to cross the resistance
with volume before entering a trade.
Thus we must know how to use Trending OI effectively. Once you know how to use it Trending
OI is a Beauty.
Now on similar lines we may analyse Bearish scenarios as well. The broad contours would
remain the same. So let us start straight away with the summary first and then jump to
examples.
Please consider following Trending OI of Bank Nifty for 18 Feb 2021 for identifying different
Bearish Outlooks which are self explanatory as explained in Bullish scenarios.
But we got an Inverted Hammer candle , now should we enter or not. We shall take help of
Trending OI.
We see that at 11.45 we get an Extremely Bearish Outlook. So I would definitely look for
Shorting this market. If price retraces with small volumes then it would be an ideal situation to
enter short.
Even at 12.00 we got another Extremely Bearish Outlook as we saw unwinding of Put OI and
rise in CALL OI that suggests that this is bear territory.
Till 12.00 there was minor retracement without volume till Supertrend thus a perfect entry and
then the market fell rapidly thus confirming the Trending OI view.
Thus on this day Trending OI helped to trade with confidence and that is key to success.
Let us consider one more example to see how Trending OI helped a Bearish Short Trade while
the market was Extremely Bearish.
Let us see the price chart of the day till 13.30 Hours
Here you can see that the price is below VWAP, and trying to test the Day’s Low at 13.30 Hours
and RSI below 40. Should one consider going short here? Let us see what Trending OI said on
that day
As you can see that since 11.15 we got a continuous series of Day Low Break till 13.30. This is
a case of Extreme Bearish Outlook meaning that Call Writers want the market to go down.
Now with price reaching the Day Low and that too with Volume is a bearish scene. The Outlook
provided by Trending OI is a nail in the coffin for the occasion. Risk bearing Traders could have
entered at 13.30 itself, while conservative players could have entered once the Day low gets
broken with Volume (that happened at 13.39). IN both cases the reward was very good. Just
observe what happened next
Thus we see how we can combine Trending OI with other Dots to enter a trade.
Thus with this we shall like to conclude the Trending OI feature. We would strongly suggest you
make this a regular weapon in your arsenal.
Again towards the end we would re emphasize that Trending OI has to be used in
conjunction with other connecting dots like Price Action, Volume analysis, RSI, Global
Markets, VIX etc to enter a trade. Thus we would recommend you to go through the instructions
again and again and backtest this feature to gain confidence.
On the basis of our analysis and backtests we can surely say that “Trending OI is a Beauty”.
We explain all the fine nuances of Connecting the dots to trade in workshops and mentoring
programs in which you can enroll to become a better version of yourself. The details of these
programs are regularly updated on our website https://oipulse.com/app/dashboard.
We hope that the Trending OI feature of OI Pulse would help you to decode the markets further
to develop an edge and become a better version of yourself.
Regards
Team OI Pulse
Addendum 5
Continuing with our endeavour to bring new features that would help traders to decode the
complex market analysis we bring 2 new exciting features that would prove to be very important
weapons in your arsenal.
In this manual we shall first go through basic steps first as to how you can access these
features and analyse data in different manner and then we shall use these features along with
other connecting Dots to prepare a Trading Plan for Expiry Day.
So lets start
1. FII/DII Activity
Foreign Institutional Investors(FII) are big institutions of foreign origin who invest in Indian
markets. These can be Global Mutual Funds, Hedge Funds, Pension Funds , Sovereign Wealth
funds etc. Indian Derivative market is the largest market in the world so all the major Global
Institutions like Merill Lynch, HSBC, Citigroup invest actively in Indian Markets in both Cash as
well as Derivative markets.
These institutions have deep pockets and invest professionally after doing thorough analysis.
They have a dedicated team of professionals and experts to identify investment opportunities.
Since they have deep pockets and invest heavily they are one of the most important Market
Movers. Thus tracking their activity is very important.
Like FII we have Domestic Institutional Investors (DII’s) who would be India based Institutions
like Mutual Funds,LIC,UTI etc. Over the years they too have become very important players in
the Cash as well as Derivative markets and their actions too need to be monitored actively.
Why are FII/DII Important?
Since these institutional players have deep pockets they trade in huge quantities with big capital
running in thousands of Crores. Thus they are the Market Movers and can have a significant
impact on the Trend of the Market.
Thus it is very important to analyse whether they are pumping in money or taking out money
from the markets. It is also important to know where they are transacting , whether they are
transacting in Cash Market or Derivative Markets, how much they are investing in Futures and
by what amount they are trading with options. We need to track this information as it would have
a major impact on the next trading session. This is where OI Pulse would ease the job for you.
Let us say if today FII A pumps in INR 2000 Cr in cash and derivative market and market closes
higher. Tomorrow there are high chances that the Euphoria may continue and the market may
still rise higher. But certainly if FII B comes in and shorts the market with INR 3000 Cr then the
market would certainly move down.
So the point is never use FII/DII data alone to decide the next day trading plan. Always
use other connecting dots as well to form an opinion.
So with this let us see how OI Pulse would help you track their activity.
In the FII/DII Activity Capital Market option you can see how the institutions traded in the Cash
Market. You would see the data in following manner
You can see their action on different dates together.
Green Bars means they have made Investment on a particular day and red bars means they
have made redemption on that day.
What is more important is to see their collective action and that too over a period of time
because that would help you to form an opinion
In this collective analysis you can see the combined actions of the institutions. A big green day
implies bullishness while red bar implies bearishness as they are taking money out of the
system.
On similar lines we also need to analyse FII/DII data for Derivative Markets. This feature would
focus on investment/redemption by FII/DII in following fields
Again we would reiterate that please consider all the Dots before taking a view for next day
apart from FII/DII Data.
2. Options/Expiry Strategy
Though the name is Expiry Strategy, it may be used everyday too. With this feature you can see
all the important strikes and their open interest & premium variation for the last 5 days. This data
shall be presented to you in tabular form and would highlight both Calls and Puts for important
strikes that would be determined by our AI based system.
Once you select the day you would see following window
In this data you would see variation in the premiums of strikes along with change in OI. This
would be the foundation for preparing a trading plan for the Expiry session.
We have also given you the flexibility to choose respective strikes of your choice as shown
below
Now having gone through the basics of new features let us do an exercise where we would
prepare a trading plan for an Expiry Day using the new as well as existing features.
Expiry Day Trading Plan
As has been rightly quoted above by the famous Spanish novelist Miguel de Cervantes if one is
prepared then half the battle is won. This applies to every field including Trading. With this as
the starting point we shall learn how to prepare oneself and make a trading plan for weekly and
monthly expiry of Nifty & Bank Nifty F&O Contract.
We shall learn how to make a plan while taking into consideration a live example from the
market. For this example we shall take into consideration the weekly expiry of Bank Nifty 4
March 2021 Contract.
So first things first what should be the desirable objectives of a trading plan?
While doing analysis, we must be clear that the plan should give us a clear trading direction
for two periods in the expiry session. The morning period and Closing period.
In this exercise of Expiry Day Analysis we shall learn to prepare two plans
Morning period ( 1 hour after market opens) is most important because it is usually based
on Pre market factors and accounts for a major portion of the price range of the entire day. The
price movements we get in the initial 1-1.5 hours are significant ones and usually accompanied
with momentum. So having a trading plan for the morning period can give great results.
Closing Period (1-1.5 hours before 3.30) of Expiry Day is also very crucial as we get some
wild movements with momentum which can also be caught if one does proper intraday analysis
of Open Interest.
The morning period of every trading session including that of expiry day is dependent on
Premarket factors and can be analysed. If done properly it can give very good results because
we usually get swift price movements in the first one hour.
Major Factors to be taken into consideration for Morning Period Trading Plan
So let us discuss these factors while taking an example of Bank Nifty Weekly Expiry of 4 March
2021.
1. Bank Nifty Future had a major Gap down on 26 Feb and it plunged further lower till
34660 after breaking two important support lines around 35500 & 34950
2. For next two days price consolidated between previous two levels of 35550 & 34950
3. On 3 March we broke this consolidation zone, had a Gap Up and had a Bull run while
filling the Gap created on 26 Feb. It took a stop at an exact Resistance of 36600 levels.
Volume Analysis
Through Price Analysis we know that Bulls are back after bears tried to take control but do they
have ammunition to take the market higher?
For this we need to dive deeper into Volume Analysis.
Please focus on the volume for period 26 Feb to 3 March in following table
Kindly observe that on 26 Feb when Markets plunged nearly 1500 points it was with very high
Volume and on 3 March when Price covered the fall and filled the Gap due to the Great fall of 26
Feb it was not with High Volume Candles. Thus the fall was with very high Volumes but rise was
with relatively less Volume.
35500,,35800,35900,36000,36100,36200,36300,36400,36500,36600,36700,36800,37000
This feature gives you the flexibility to choose strikes of your choice as shown above
Once you click the “Go” button you would have detailed analysis of all the strikes in front of you as shown below.
Once you get the results start decoding the data from the top
So let us start straight away with the 36000 strike. We shall analyse both Call and Put Option
Next important question is what do we analyse once we are inside the data?
We shall analyse following parameters inside the data
We know that on 26 Feb Bank Nifty dropped from 36500 levels to 34650. It was a Trending Day
and price closed at Day’s Low while making an intraday rebound.
● So on 36000 CE levels we saw a huge spike in OI as writers aggressively wrote Call
Options. Just notice OI on CE jumped from 1,54,900 to 8,29,450 a jump of nearly 437%.
● The price/premium decayed by 74 %
● Thus it was more than 50% rise in OI and more than 50% drop in price, a condition we
identify as Strong Shortbuildup
● The Premiums decayed from 650 to 205 and closed at 249.
So clearly some major Call Writers or Bears entered the market on this particular day. That's
what this data tells us. Now they would like to dominate and for that they would want the
premiums to decay further and that would happen only if the Bulls don't get into the picture.
So Bears must defend their territory from the Bulls. If however the Bears enter and take the
market higher then Bears would have to run for cover while covering their losses.
So let's see what happened during the week.
● During the next 2 days we saw that price consolidated between immediate support and
resistance while the price of 36000 was never touched.
● The Premiums decayed by 3% and 29 % while OI increased by 12 % and 22% on 1 and
2 March. Though this is a short buildup but a weak one.
● This clearly shows that Bears are not able to take control and push the market lower.
● This is a sign of weakness from the Bears.
● In this scenario if Bulls get into action then weker Bears would cover their position and
this is what happened on 3 March
● On 3 March Price crossed 36000 levels and rallied till 36450
Thus for the next day it would be Strong Bears vs average Bulls as strong Bears are still
retaining the fort and Bulls have not been able to close the premiums near Day’s high.
In such a situation where Bulls have just taken the control but not in a convincing
manner while strong bears are still holding the fort Global Markets would play a very
important role.
1. If next day Global Markets are flat then Strong Bears might try to bring the market lower
but Bulls would definitely push the market higher. Thus Buy on Dips
2. If however the Global Markets are in deep red then Strong Bears would try to gain
control and use every opportunity to take the market lower thus Sell on Rise.
On 26 Feb after the great fall the Put writers got scared away and covered their position.
They suffered major losses as prices soared from 315 to 1621 on 26 Feb. Just imagine
their pain.
Next 2 days were consolidation days and they were still able to get the benefit of the decay
premium.
Now on 3 March as the Markets soared once again they have entered aggressively as we saw
791% increase in OI and 84% decay in premium. Thus a Strong short buildup.
Also they were able to drive the prices from 549 to 96.
Their action would have been more convincing had the Premium close price been near day’s
low.
But overall the Put OI data shows Bullishness as they have taken some aggressive positions.
However please do note that maximum positions are near 36000 & 35500 levels despite
price closing near 36400. Had 36500 seen a major Put OI buildup then things would have
been absolutely bullish but it isn't.
Thus 36000 and 35500 would be good support levels based on Put OI.
Lets have a look at Put OI of different strikes
So overall the OI Picture is clear and shows that we have Strong Bears who are still in the game
while Bulls have captured the fort but not in a convincing manner.
Had Call premiums closed near Day’s high while Put premiums closed near Day’s Low and we
would have seen more Put writing at a higher level then things would have been much more
Bullish.
In such a situation we must wait for the price level of 36600 to be taken out with volume to be
absolutely Bullish while being cautious on the downside.
Global Markets would play a major role in deciding the Trading plan for expiry in such a
situation.
3. Global Markets
Now having analysed the Price Action,Volume Analysis and Open Interest the next important
parameter to be analysed is Global Markets, the next Connecting Dot.
In Global Markets we shall take into consideration following markets
1. US Dow Jones Spot/Future
2. US Nasdaq Spot/Future
3. Hang Seng Index Futures
4. Nikkei
5. European Markets FTSE/CAC/DAX
Out of these the US Dow Jones is most important as it is considered to be the Mother of all
markets.
Now coming to our Expiry Analysis we see that Global Market Action is important for this
particular day.
Though 3 March was a Trend Day but further Continuance of Up Move is unlikely today due
to following factors
● The Up Move, though covered the Gap was done with relatively low Volume
● The Short Covering on the Call Side was not aggressive and still we may assume that
only weak hands were removed
● Put Premiums did not close at day’s Low
● Dow has moved significantly lower
● Asian Markets are also lower
In such a situation following things need to be observed
So this is the analysis for Expiry Day Morning Trade-”SELL ON RISE and NO CHASING GAP
DOWN”.
4. FII/DII Data
We need to see how FII and DII behaved in Cash Market on 3 March
March is a very special day for FII/DII Data. On this day both FII and DII were net buyers in the
Cash Market and together they put in around 2400 Crore. This is certainly Bullish.
But we have a Sell On Rise scenario on the basis of other factors.
So what does it mean for this day?
● It means that FII/DII are bullish for the day they will not like the market to fall down.
Thus in this scenario the important Support level of 35500 would be very important.
● If this level is not broken and Dow recovers or stabilizes the FII’s who pumped in money
Yesterday would like the market to recover.
● If however we see the price of 35500 breaking with volume and Dow also going
down then this data would be irrelevant as fresh FIIs would come into picture and
Sell aggressively in the Cash Market.
Thus we are now clear about how FII and DII data would play in the Market.
● 3 March was a Bullish Trend Day. It covered the huge Gap created by sell of on 26 Feb.
● However the Bullish Trend took a stop at an important Resistance level of 36600.
● The Volume with which the market escalated was relatively lower than the volume with
which the market went down.
● Thus any upside move is likely to be capped till we cross 36600 with great Volumes.
● We saw CALL writers covering their positions on important strikes but this covering was
not a strong one as only 40% writers covered their position. Any covering of order of
55-60% would have been a strong signal for further up move. Plus there was no
significant Long Buildup on that day. Thus any upmove is certainly capped.
● We saw significant Put writing happening but the Premiums did not close at Day’s Low.
● The Global Markets including DOW are in deep red on the morning of 4 march.
● Thus pained Call writers would become aggressive in morning and weak Put writers
would cover their position.
● FII/DII data was bullish for the previous day.
● Thus it would be wise to Sell on Rise in the morning session and not chase the Gap
Down until the important support level of 35500 is taken out with Volume and Dow falls
further.
Now having a Trading Plan ready let us see how markets behaved actually and let us see if we
got any opportunities in the Morning.
Below mentioned is the Price Chart for the day of 4 March 2021.
s
Kindly observe that we saw a huge Gap down and RSI dropped below 20 on opening itself.
Let us also observe how Open Interest behaved in initial morning hours
We see that initially we witnessed heavy call writing. After 10 AM there was a massive increase
in CALL OI as compared to Put OI as the price was consolidating. Thereafter the price broke the
consolidation zone on upside and moved upwards. Thus weak CALL writers had to cover their
position. Thus it was a part of the plan not to chase any down move until the critical support was
broken with volume. It didn't happen and previous Day Put writers and probably FII/DII who
invested heavily in the cash market took the market to a higher level.
I. Professional scalpers would have entered in the opening candle itself and scalped on
the Put side
II. Once RSI climbed back to levels of 20 it was a good opportunity to Short the Market and
buy Puts. It is clearly shown on the chart.
III. Once the Price was below VWAP and it made an attempt to go up without any significant
volume it was another opportunity to scalp on Put side.
Also observe that our decision not to chase Downward move played out well as the important
Support level of 35500 was not broken with volume. Rather, the price climbed up thereafter.
So with this our Morning View played out very well and these 3 trades were enough to meet
your daily targets.
The remainder of the Day was a battle between Bulls and Bears and Bears were not able to
break 35500 and Bulls were not able to climb to 36600.
However now let us shift our focus to the second part of Expiry Day that is Closing Session
Trade.
This analysis is dedicated exclusively for Expiry Day. The rationale behind this analysis is that
we usually get wild swing movements in the last one hour on every expiry. This is mainly due to
involvement of influential players in the Options market to make profit.
If we are able to analyse the plan of Market movers then we may earn some good results.
At the very outset we shall like to say that Market Movers make money on Expiry Day by both
Buying as well as Selling options though their activity as sellers is predominant.
So what major factors do we analyse for this closing period on expiry day.
First we shall see how the day was in terms of Price Action
We see that during the day the lower support of 35500 was well protected and thereafter we
saw consolidation till 11 AM. After 11 AM bulls took the market higher but could not reach an
important level of 36500.
Thus it was clear that neither the Bulls nor the Bears had complete conviction to drive the prices
either way. Thus we may have expiry in between these levels and price movement can be
deduced if we do OI analysis during the last one hour properly.
Kindly see what happened at 14.30 hours. We saw a massive Short Buildup happening on the
Put side. An increase of OI by 13,23,150 that is quite high.
If we analyse just Put writing then it is a Bullish sign but it has to be accompanied by other
factors too for being really bullish. We must see following follow ups
So in case we get any down move then these Put writers would cover their position and we may
see CALL writing on other hand.
Just observe
After 2.30 the price made no up move and we saw Short Covering on Put side and Short
Buildup on CALL Side.
In this scenario 35900 PE made an obvious choice once downmove started a it too displayed
similar behaviour.
Just observe the down move after 14.50. Put writers got trapped and ran for cover thereafter.
Thus 35900 was our Hero of the Day.
In the end we again like to emphasise the fact that one must enter a market after making a
proper Trading Plan and carrying out trades in accordance with that plan. This exercise would
improve your performance by leaps and bounds for sure.
OI Pulse which is our tool for Decoding the markets has been developed exactly to do the job
and would help to simplify complex things for you.
Kindly share your feedback with us on this Expiry Day Analysis so we may improve further and
achieve our mission of empowering Retail Traders through knowledge in a more effective
manner.
Regards
Team OI Pulse
ADDENDUM 6
While we receive encouraging feedback from active users we still strive to bring new features
that would help the traders decode the market and trade with confidence.
Continuing with our mission to empower retail traders we bring 3 new exciting features that
would certainly help you improve your trading performance
In this addendum we shall learn how to access these features and how to interpret the
conveyed information to enter or exit an trade.
So lets start
1. Options/Big OI Movement
This feature has been developed after a lot of thought process and can certainly prove to be
one of the most effective tools to decode the markets at micro level and thus help you take
trades confidently and optimise your position sizing. Big OI when used with other features of
OI Pulse especially Trending OI would let you know when you can be aggressive in taking
trades and when you need to be cautious. So lets learn about it in a comprehensive manner.
So let us start by answering the question “What is the Big OI Movement and Why is it
important?”
So let us take the “What” aspect first. Big OI Movement is the latest feature of OI Pulse that
tracks the big or significant changes in Open Interest (OI) of Options of the indices of all the
strikes in real time. We have used our AI based system to identify such strikes where this Big
change is happening. The computed data is presented separately for Call and Put Options.
So let us see how this feature can be accessed.
It can be used under the “Options” feature of OI Pulse
Once inside the feature just select the standard option of Live or Historical Data for BankNifty or
Nifty and you would see following result
Here in the tabular form presented separately for Calls and Puts you would see different strikes
appearing at different time intervals. These are the strikes that have seen the Big OI Movement.
Consider following example of Calls
During the time interval 09.25-09.30 33400 CE has undergone Big OI Movement. Other data
helps you realise how Big this movement was and what was the OI Interpretation. In the above
example at 9.30 33400 strike was ITM as the spot was 33472.1. It saw an OI increase of 32,325
with price increase of 54.4 thus Long Build up.
Now since the OI Movement is big it will have some ramifications. What these ramifications
would be, we shall learn in the next part of “Why is the Big OI Movement important ?”
We have constantly reiterated that OI is God of derivative markets. We need to track the OI
changes of Futures as well as Options. OI Pulse has simplified the procedure for tracking OI of
Futures. Tracking OI and change in OI of options can be a little tricky as we have to keep track
of many strikes on Call and Put side. “Trending OI” would give you the overall picture of what is
happening at a macro level. But in order to decode the market effectively we need to know
where exactly is the action happening and when. This is where this feature would help us.
We know that sellers dominate the options market for the majority of time. If we know where and
when they are taking positions we can position ourselves for a trading opportunity more
confidently. Our Position sizing can be optimised using this feature.
Thus this is the major advantage of this feature. It would boost your confidence to take a trade
and thus you can take a large position when we witness the Big OI movement along with the
Price Movement. If we don’t get BIG OI movement then we must trade cautiously with limited
quantity.
We shall like to reiterate the fact that do not trade exclusively based on any one factor but
connect the dots to take a trade while deciding the Position sizing and risk management.
Now we would demonstrate two examples where you would have an almost similar Bullish
scenario. But you must use different position sizing in both the trades.
Example 1 would be a bullish scenario where you can be aggressively bullish whereas
example 2 would be one where you need to be cautiously bullish.
We consider an example of BankNifty Future Dated 23 March 2021. Consider the time period
14.15 hours on this particular day
We see that by the end of the 14.18 candle we saw a Bullish setup. We had two consecutive
green candles and that too with ascending volume. Also the RSI was above 60. Now if we know
what the Call writers are doing at this junction then we can manage our trade confidently. If
CALL writers are writing more then it means that we need to be cautious on the rise. However if
the Call writers are covering their position then it surely means that Call writers are afraid of
further rise and thus limiting their losses by covering their position. This must happen on a large
scale and we must have some significant change in OI. We also need to take into consideration
the action of Put writers. Any further up move must be accompanied with more aggressive Put
writing. Let us see what the Big OI movement feature captured at that instance.
We see that ITM strike 34000 witnessed a significant covering on Call side till 14.20. By 14.25
the Call side saw further covering while Put side now saw major writing, thus a totally bullish
scenario.
In such a scenario we can take a large position.
Bank Nifty jumped from 34205 to 34424 thus the scalp with good quantity would have been
really fruitful.
Thus the Big OI movement gave you confidence to go into the trade with maximum quantity.
We consider BankNifty Future Dated 23 March 2021. Consider the time period 10.54 hours on
this particular day
Here also we have 2 consecutive green candles with ascending Volume much greater than 50
K. This in fact seems to be more bullish than example 1. RSI around 80 would give you some
doubt about further bullish moves but you can't be sure as RSI can easily touch 90 levels in
such cases. Any change in OI would give concrete evidence. So let us look at what Big OI
feature captured at this instance.
On the call side we see that initially we saw short covering but in the next 5 minutes there was
Long Unwinding wherein profit booking on the up move came in. This is certainly not good for
further up move.
On the Put side we must have seen Short buildup but what we saw was Long Buildup that is a
bearish sign.
Thus although chart gives you Bullish Outlook, RSI creates a doubt and Big OI confirms that
further up move would be capped. Thus if playing on the Bullish side we must reduce our
position sizing for this particular trade.
Let us have a look at what happened next.
Though the price increased a bit but it dropped soon to 33365 from a high of 34367.
Only a superfast scalp would have got some profit in this situation.
Thus we saw how Big OI feature can actually help you trade with confidence. Now having taken
into consideration Call side trades let us take some examples on Put side where Big OI shall
give you an indication to be aggressively short or cautiously short.
Here we shall consider an example of Bank Nifty on 31 March 2021. Consider the time period of
10.18-10.30 hrs.
In this example we shall learn how Big OI could help you identify traps to remove the weak
hands from downward movement.
Let us see what happened on the Price chart
Here we can observe that by the end of 10.21 candle we had two consecutive red candles with
volume greater than 50K. Supertrend and RSI favoured the down trend. Ideally your entry
should be in the third candle. But what happened in the next two candles would have shaken
many. Next two candles were green candles. This move would have shaken the weak hands
out. Now in such a scenario. There must be a thought going on in many minds whether this is a
Trend Reversal or a Trap to remove weak hands. In such a dilemma BIG OI feature would
have helped you in a big way.
Let us see what Big OI recorded in that particular time frame.
We saw that with the down movement Call writers increased the OI with considerable Short
buildup thus increasing the Downward pressure while Put writers in ITM covered their position
thus signalling that this market will go further down.
Thus using Big OI you could have decided that upward price movement was a trap by the
Bears who wanted to remove the weak hands out.
By this time you must have realised why this tool is important and how it can help you maximise
your trading profits.
Let's consider one more example where it suggested you to be cautiously short.
Example 4: Cautiously Short
We will consider examples from the same day i.e 31 March 2021 and see how Big OI features
would help us maximise our profits.
Consider the time period 13.15-13.30 on that day.
Let us see what happened on the price chart
In this particular time period we got two consecutive Bearish candles along with volumes more
than 50 K. Super Trend and RSI two showed great potential of a downward trade.
But let us see what Big OI recorded for this time period.
We see that when price moved Lower Call writers didn’t enter and write call Options thus
signalling that they are not confident that the market would go further lower. Let us see what
happened on the Put side. We saw “LONG UNWINDING”. Thus Put buyers felt that the
necessity to book the profits as they believed that this Market won't go down further.
So now if neither the Call Writers nor Put buyers believe that this market would go lower then
how can a miracle happen and the market go lower?
Thus BIG OI screamed to be cautious on the down side.
Let us see what happened next
Thus we see that we didn't see any further down move during the remaining day. Only a quick
scalp with less quantity made sense in this trade.
Thus now having gone through various examples we now know that Big OI can help you
immensely by decoding the Market sentiment at the micro level at any given juncture. This tool if
used regularly will certainly take your trading to the next level. Thus use it extensively to gauge
the market sentiment at micro level.
All of them trade in the Derivative market. If we know how these categories are placed in the
market at any given time then we may form an opinion. Before we proceed further to know how
OI pulse would decode the data let us have a foundational understanding of the Participant wise
OI data. We will try to understand how we can form an opinion by analysing 3 hypothetical
scenarios.
We will consider Index Futures (that means Nifty & Bank Nifty Futures of all series). Suppose
that the OI of Index Futures is 1000000. This means that there are 10 lakh open positions. So
there are 10 Lakhs Long and 10 Lakh Short positions. If we know who is Long and who is short
then we can have a good idea what can be expected next day.
Scenario 1:
We know that there would always be some FII’s who would be Long and some would be short
and similar would be the case with other market participants.
Now let us analyse the Net positions of all the market Participants in this case
So what can we analyse from the given data.
1. Total Long positions is equal to the total short positions.
2. At any given time some participants would be Long and some would be short.
3. Even each participant type e.g FII would have both Long as well as Short positions.
We know that in such a situation the market has more chances of going higher as usually FII,DII
and Pro would control the market and Clients or retailers would just be following the moves. So
if you get such a scenario expect the market to be Bullish next day provided World markets do
not go aggressively down.
Scenario 2
Let us now also consider the Net Positions of the Market participants
In this case we clearly know that all the institutional players are on the short side and retailers
on Long side.
We observe that Clients are majority of Short position holders and FII & Pro’s are
majority of Open Position holders.
In such a situation it makes sense to be on the Short side.
There would be days when we get data of this kind. But for the majority of days we will get
mixed data. Let us consider third scenario to have a look at this mixed situation
Scenario 3
So if we are to summarise our learnings till this point we can do it in following manner
1. Total Long open positions is equal to the total short open positions.
2. At any given time some participants would be Long and some would be short.
3. Even each participant type e.g FII would have both Long as well as Short positions.
4. If FII/Pro hold the majority of the positions on either Long or short side then we can have
a directional view.
In terms of relative importance of Participants follow following sequence
FII > Pro> DII > Client.
We need to analyse the data for Futures as well as Options (Calls & Puts) for Index and Stocks
all together to form an opinion.
Now we know how this data can help us form directional views. But we already know that
situations where the absolute data gives such clarity are few. In the majority of cases we would
have mixed situations as shown in Scenario 3. So is there a way we can decode this data
further? Absolutely yes. We can do so by tracking the Change In OI on a day to day basis.
This is where OI Pulse would help you keep track of the changes in OI data of all the
participants in a systematic way and also help you decode the interpretation of the data.
Now before we switch to OI Pulse let us understand how we can decode the data based on
changes in OI. For simplicity we would consider Scenario 3 again. Since we need to make
inferences based on change in OI we need data of two consecutive days.
So DAY 1 data is as under
On Day 2 the market went through some changes and at the end of day 2 there was a shift in
Open positions. We witnessed an increase of OI from 10 lakh to 15 lakhs and the new OI data
looked like this
Now we need to focus only upon change in OI. and for that we need to look at data in following
manner
PARTICIPANT WISE CHANGE IN OI DATA FOR INDEX FUTURE
CHANGE IN CHANGE IN
LONG OI SHORT OI
Now let us understand what is an aggressively bullish, cautiously bullish, aggressively bearish
and cautiously bearish scenario
So based on the data for the above example we know that FII,DII and Pro are Aggressively
Bullish whereas Clients are Bearish.
FII: Increased their long positions and decreased their short position (Aggressively Bullish)
DII: Increased their long positions and decreased their short position (Aggressively Bullish)
Pro: Increased their long positions and decreased their short position (Aggressively Bullish)
Client: Increased their short positions and decreased their long position (Aggressively Bearish)
Thus we know that since the institutions have turned aggressively Bullish and clients have
turned bearish. So we must align ourselves with the institutions and hold Bullish outlook
for the next day especially morning hours.
Till now we considered only hypothetical examples and that too only for Index Futures. In the
real world we need to analyse a lot of data. We need to analyse the absolute and change in OI
data for all the 4 participants
1. Index Futures
2. Stock Futures
3. Index Calls
4. Index Puts
5. Stock Calls
6. Stock Puts
It would be a complex task but with OI pulse it would be much easier.
So let us first see how to access this feature in OI Pulse.
Only 1 data suggests Bearishness and that too Options Stock Call. So we may safely assume
that FII are Bullish on Change in OI data basis.
Also on absolute term FII held a majority of Open Long positions in Index Futures that is bullish
Once inside the Strategy one needs to select the Correct Strike prices.
For Straddle just select ATM strike or any other strike and for Strangle select OTM Call and
OTM Put strike price.
Let us consider an example where playing with a Straddle made absolute sense and see how
OI Pulse Strategy feature would have helped to enter the trade.
Let us identify why on this particular day we could have played Straddle or a Strangle.
Let us look at Trending OI data for that day
Just observe that the data didn't Trend on that day. The difference in Call & Put OI remained
static on that day.
Now just observe the IV data for that day in Morning hours
Just observe that till 11 the IV levels were of the order of 37 and 36. Very high on both the sides.
Now when OI is not building up on either the Call or Put side and IV is high it makes sense to
play Strangle Strategy.
For selecting the strikes let us observe the Price chart.
We will select Call strike above Day HIgh and Put strike below Day low till 11 when we decide to
play Strangle
On this particular day till 11 am 33800 was day high and 33392 was day low. SO wie will select
OTM strikes above and below these levels.
OTM Call Strike: 33900 (Above Day High)
OTM Put Strike : 33300 (Below Day Low)
Now if we select these strikes in “Strategy feature” we would get following result
This graph is based on the internal system of OI Pulse. Here blue line refers to the VWAP Price
of the selected strikes and Yellow line represents the combined premium of Call and Put.
When these two are plotted together they give a unique combination. Whenever the premium
comes near the VWAP we can enter or increase the position.
On this particular day the price came near to VWAP till 11.35 and we could have built our
position accordingly.
For the remainder of the day the Premium due to Time Decay and drop in IV decreased from
960 to 682.
Thus using this feature and others like Trending OI,Active IV one could have easily made some
money.
The key lies in identifying the opportunities and OI Pulse would assist you in that.
On similar lines Straddle would also be played.
We hope that you would find the latest features of OI Pulse quite useful for your trading.
Kindly share your feedback with us on these new features so we may improve further and
achieve our mission of empowering Retail Traders through knowledge in a more effective
manner.
Regards
Team OI Pulse
ADDENDUM 7
We hope that you are making full use of OI Pulse for your trading purposes. We keep on adding
more and more features that help you to improve your trading skills. In this addendum we are
going to share one of our most profitable in-house Proprietary Trading Strategy that has been
developed on the basis of years of trading experience.
We call it the “OPEN HIGH” strategy. Not only we would discuss the concept of the strategy we
would also introduce the latest feature of OI Pulse “Open & High Strategy” that would
facilitate you to deploy this strategy right at the opening of the market.
So we will learn not only the concept but the practical way to convert the trading idea into
Trading opportunity with help of OI Pulse.
So let’s begin.
OPEN HIGH
We know that one of the best trading techniques for retailers is to align their trades with that of
Big Boys or Market movers. The objective of this concept is to decode the mindset of such Big
Players and find trading opportunities.
Now we shall try to understand the concept by dealing with following questions
Once we are done with OPEN HIGH concept understanding we will learn a trading system for
such cases. We will learn trading system by answering following questions
1. When should we enter the trade when we see Open High Opening?
2. How should we manage our position sizing for these trades?
3. Which strikes should we select for OH trades?
4. Till what time is this setup valid?
5. What should be the target for uch trades?
6. How can OI Pulse help me in Open High trade setup?
For better understanding we shall initially restrict our discussion to Bank Nifty Call Options &
Futures in a Bullish scenario and then later on extend it to other scenarios.
The above prices that you see are from the Trading terminal on 19 February at 9.30 AM.
So what do you observe
● Bank NIfty Future opened at 36402.00 and its high till 9.30 is also 36402.00
● Banknifty 36300 CE opened at 560.10 and its high till 9.30 is also 560.10
● Banknifty 36400 CE opened at 540.85 and its high till 9.30 is also 540.85
● Banknifty 36600 CE opened at 474.05 and its high till 9.30 is also 474.05
● Banknifty 37000 CE opened at 272.15 and its high till 9.30 is also 272.15
So we call such a scenario the OPEN HIGH scenario. When the Open Price is the same as
High Price till the time you make the observation. It is a dynamic concept that means that if you
observe the trading terminal later, let us say at 10.00 AM such a situation may not be valid once
again. It may happen that Bank Nifty moves to 36500. In such a scenario the new High will be
36500 and it would replace the earlier entry of 36402 in the trading terminal.
2. How & Why does such an opening happen in the first place?
In order to understand the “Why” in this question it is important to understand how prices are
determined at the opening and how “LTP” is subsequently determined.
The NSE website has a dedicated section for this concept. I request you to kindly go through
the following link to understand the concept in detail
https://www.nseindia.com/products-services/equity-market-pre-open#:~:text=The%20opening%
20price%20is%20determined,the%20maximum%20volume%20is%20executable.&text=In%20c
ase%20if%20no%20price,market%20is%20the%20open%20price.
We would try to understand this Price determination in an Oversimplified manner for grasping
the concept.
Now imagine you are a Big Institutional Player who is Bullish for the day and wants to invest
say 500 crores in the market. What would you do? You would invest a portion of this 100 crore
right at opening. Let us say this portion is 25 crore. Rest 75 crore you would invest during the
day as you are Bullish for coming sessions.
265 15000
260 20000
258 25000
255 20000
10000 250
15000 249
10000 245
20000 240
10000 239
BID & ASK for 35000 CE at 9.06 AM
Now you are a Big player and want to invest 5 Crore in 35000 CE right at opening.
In order to do so I must place my BID at the highest ASK Price i.e 265.
So I will place my order for 80,000 qty at a price of 265 to ensure that my order gets filled.
So right at opening 80,000 qty would get filled at 265 and after that since the next bidder is at
250 price LTP would drop down immediately.
SITUATION AFTER INSTITUTIONAL BID AT HIGHEST ASK PRICE
So this is how we will get a price where in High is equal to the Opening Price.
We have oversimplified the mechanism for understanding. In reality it is a bit complex as it
involves Market Orders in addition to Limit orders but the broader aspect remains the same.
For example for 35000 CE if open and high level is 265 and the current LTP is 190 then there is
high probability that premium may go once again to 265 level or beyond. This is where we will
plan a trade subject to fulfillment of conditions.
1. If the Big Player’s view coincides with broader Market view then prices will again rise to
High price and go beyond after testing some previous support.
2. If the Big Players view is against the broader market view then in order to minimise his
loss he will use remaining capital to bring the price near the HIgh levels once again.
So what we are talking about is HIGH PROBABILITY of price coming back to the High level in
any situation. We can trade in such a case.
So I guess the concept is clear for you. I will just highlight the key aspects of identifying high
probable trades
So we must get Open & High on either the Calls or Puts. The probability for Call OH increases
when we get OH on Futures as well while probability of OH on puts increases when we get
OL(Open=Low) on Futures.
However kindly note that there will be instances when we get OH on options on both Calls and
Puts but not on Futures. In such a scenario we can trade on both sides but with caution.
Here is a summary
CALL OPTIONS
2 - MILD PROBABILITY
OPEN=HIGH
PUT OPTIONS
3 OPEN=LOW HIGH PROBABILITY
OPEN=HIGH
PUT OPTIONS
4 - MILD PROBABILITY
OPEN=HIGH
CALL OPTIONS
OPEN =HIGH
5 - & MILD PROBABILITY ON BOTH THE SIDES
PUT OPTIONS
OPEN=HIGH
Table 1: Probability of OH success on basis of Futures and Options.
So till now we have talked just about Probabilities, this does not mean you will straight away buy
Calls or Puts on seeing the Open & High scenarios.
As discussed in the introduction we shall learn the trade setup in a sequential manner by
answering certain questions
1. When should we enter the trade when we see Open High Opening?
2. How should we manage our position sizing for these trades?
3. Which strikes should we select for OH trades?
4. Till what time is this setup valid?
5. What should be the target for uch trades?
6. How can OI Pulse help me in Open High trade setup?
So let’s begin
1. When should we enter the trade when we see Open High Opening?
I would start by asking a counter question “ Should you enter straightaway in the trade when
you see Open=High Opening on Call or Put side?”
So you must look for follow up price movements and analyse them with Volumes.
So you must not enter blindly but wait for subsequent price and volume candles to play their
part.
B. Global Markets
Global markets should not go against the direction of Opening Big Players. If we get OH on CE
and world markets fall then the probability of success will diminish. Likewise you can analyse PE
trades.
C. VIX
Like Global markets VIX should not go against the OPening player. If we get OH on the CE then
any rise in VIX along with fall in price will diminish the probability of success of the trade
Step 1: Future OH
Check for Open High (for CE trades) on Futures (Or Open Low for PE trades).
❖ If we get Open High on Futures then it will increase the probability of OH on CE
options to be successful.
❖ If we get Open Low on Futures then it will increase the probability of OH on PE
options to be successful.
Step 2: Options OH
Check for OH on Calls or Put sides of the Option chain. You can check this on your
trading terminal and consider them
Just like the following example
CALL OPTIONS
2 - MILD PROBABILITY
OPEN=HIGH
PUT OPTIONS
3 OPEN=LOW HIGH PROBABILITY
OPEN=HIGH
PUT OPTIONS
4 - MILD PROBABILITY
OPEN=HIGH
CALL OPTIONS
OPEN =HIGH
5 - & MILD PROBABILITY ON BOTH THE SIDES
PUT OPTIONS
OPEN=HIGH
Table 1: Probability of OH success on basis of Future & Options
Step 6: Entry
Make an entry only when the Momentum picks up in your favour. Enter as soon as you
see prices rising with volumes greater than 50 K from lower levels.
You can go pyramiding to a certain extent.
Now as one more example consider Bank Nifty example of 19 Feb 2021
Step 1: Future OH
We have OH on Future thus probability of success of OH on CE if any will be high.
Step 2: Options OH
We have OH on many Call strikes. Thus we select such strikes. These will be namely
36300 CE @ OH 560.10
36400 CE @ OH 540.85
36600 CE @ OH 474.05
37000 CE @ OH 272.15
Step 4: Validation
We will observe the price chart and analyse Price and Volume candles. Any red candles
with volume greater than 50 K will be detrimental
Probability is high because of following reasons
1. OH on Futures
2. OH on many strikes on CE side
3. No subsequent fall with volume rather a green candle with volume greater than
50 K appears
Step 6: Entry
Enter as soon as momentum picks up
Step 7: Trailing the Profits
This particular day Option premiums increased appreciably.
So I guess that if you followed the concept step by step you would have been in profit more than
1% of your entire capital just by this trade alone.
Now once you are inside the feature you can select from options
This is the biggest advantage: You can do analysis for Nifty, bank Nifty and Finnifty in a
master of clicks. So your 7 x 3 steps for analysing Nifty, BankNifty & Fin Nifty shall be
greatly reduced.
You may also do backtesting using this feature for previous trading sessions.
It works beautifully in the Live market as prices get updated too on a real time basis.
Once you select the data points you would get following screen in front of you
Day Open:
In this column you will see the price at which the strike began to trade at opening.
So it is the open price of the strike.
Day High:
This will be the same as Day Open as it highlights the High price at open.
New D. High:
It stands for New Day High. If the Open High has been breached and a new high has been
formed it will get reflected in this column. It will get updated on the screen as the LTP changes.
New D. Low:
It stands for New Day Low. For all practical purposes it will show the intraday Low made by the
price till the time you observe the chart .
O=H/O=L
It will show whether the price at openmade a High or a Low and would show accordingly. It
would be static and will depend only upon the opening prices.
Triggered Time:
If the OH level has been breached then this column will show you the time at which this
happened.
In the above chart it is showing 9.22. So we will read the data as
33900 CE made an OH on opening, the Open and High Price were 1295.2 but at 9.22 this OH
was breached and subsequent new high was 1496.8 while the Low made till the time of
observation was 862.85.
Call LTP:
It will show you the latest LTP and will be updated regularly.
Probability:
This is the unique element of OI Pulse that gives some values based on an AI algorithm. Higher
the number higher is the probability of success of taking a trade.
But please please please don't take this number as a shortcut to take a trade.
Our recommendations
Take into consideration OH trade only when you see Probability greater than 90 %.
So what this feature does is that it spares you from the work of continuously monitoring the
prices.
Only when you see a probability greater than 90 % just do a quick analysis of the price and
volume of candles and be ready to take this trade.
So Probability>90% is a trigger signal for you to prepare yourself for taking the trade and not
actually enter the trade.
Enter only when you see momentum and not anytime before.
There is one more feature the “Red Dot” that is also an outcome of AI algorithms. It would look
like this
I again re emphasise 90%probability and the red dot is just a trigger point and not an
entry signal. Enter only when momentum picks up.
This feature will help you identify opportunities in a very quick manner.
Just notice the number of signals and the price at which they got hit. If you use it in the Live
market you will be highly benefited.
Now having covered almost all the aspects of OH concept and strategy I would like to proceed
towards the conclusion by answering the most important question
I am sure that you must have heard many concepts like “Short the market on OH” but if we
understand the concept behind such an opening we can make handsome money by going the
other way that our master scalper Mr. Sivakumar Jayachandran has been doing so for many
years now.
So with this I conclude the strategy and the setup. I would request you go watch following
videos on the topic to gain more clarity
https://youtu.be/wd65VD24-0E
https://youtu.be/xw-QiaptWlg
Kindly share your feedback with us on these new features so we may improve further and
achieve our mission of empowering Retail Traders through knowledge in a more effective
manner.
Regards
Team OI Pulse