Lecture Notes on Market Data Analysis (Morning Session)

Overview

• Analysis of first tick data and how it affects market view.
• Key metrics being observed: OI (Open Interest), Volume, LTP (Last Traded Price).
• Resistance and support levels identified based on OI and volume data.
• Use of data to decide on initial trades.

Key Points

Initial Data Analysis

• First Tick Data: Analysis of Nifty data at the market opening.
  • Resistance: 24500 (based on OI), with weakness on the upside.
  • Support: 24000 (based on OI), stable without weakness either up or down.
  • LTP Observations: First trade considerations based on LTP: 72 on P-side, 28 on Call side.
  • Trade Decision: Initial assumption of a green candle, leading to a call trade.

Minute-by-Minute Data Analysis

• First Minute Data: (91)

  • OI Changes: Resistance moved from 24500 to 24800, Volume strong at 24400, OI changes at 2425.
  • Resistance and Support: Imaginary resistance at 24400, Support trying to come up at 24300.

• Subsequent Minutes: Analysis at 918 AM

  • Market Scenario: Data remains similar with 24300 being crucial for OI change, resistance volume at 24400, OI at 24800.
  • Graph Analysis: Volume and OI changes show increment, indicating bullish pressure at 24300.

Analysis of Aggression in Volume and OI

• At 921 AM: Volume and OI Trends
  • Support and Resistance: Support now at 24300, Resistance at 24500, bullish pressure observed.
  • Trend Analysis: Bullish trend predominant in the morning session.

Detailed Observations at 924 AM

• Volume and OI Increment: Support at 24300 remains strong, resistance at 24500 shows increased volume.
• Market Behavior: Bullish trend continues with 24300 and 24500 as critical levels.

Analysis at 936 AM

• Resistance and Support Observation: (24300)
  • Volume Increment: Both support and resistance levels at 24300 and 24500 respectively, show significant volume changes.
  • OI Change: Resistance at 24300 increasing, indicating bearish pressure.

Market Behavioral Shifts

• At 9:42 AM: Data Adjustments
  • Support and Resistance Shifts: Support shifting to 24300, resistance observed at 24400, indicating market consolidation.
  • Graph Insights: Volume and OI behavior confirm the ongoing trend.

Key Trading Decisions

• Trading Strategy Adjustments: (Post 9:30 AM)
  • Market Trend: Continuous bullish trend observed, with adjustments based on volume and OI changes.
  • Trade Execution: Focus on trading decisions based on minute-by-minute data and graph analysis.

Final Observations

• At 948 AM: Market Trends and Trading Decisions
  • Volume and OI Analysis: Detailed examination of support at 24300 and resistance at 24400 shows market consolidation.
  • Graph Insights: Confirmation of trends leading to refined trading decisions.

Conclusion

• Overall Market Behavior: Bullish trend observed throughout the morning with critical levels being 24300 and 24500.
• Trading Strategies: Based on minute-by-minute data analysis, volume and OI trends, key trading decisions were made.
• Future Projections: Continued monitoring and adjustments based on real-time data.

Key Takeaways

• Importance of Early Data Analysis: Initial ticks provide crucial insights for the day's market behavior.
• Minute-by-Minute Monitoring: Essential for making informed trading decisions.
• Graphical Analysis: Provides visual confirmation of data trends.
• Adapting to Market Shifts: Flexibility in strategy based on real-time data is critical.

Note: The session emphasized the importance of constant monitoring and adapting to market changes for successful trading.