Welcome to this today’s F&O Insights! We’re breaking down Futures & Options (F&O) data to help you spot market trends, whether you’re just starting or sharpening your skills. This edition dives into new expiries launched for 24 April 2025, offering a fresh view on trader sentiment amid a bearish tilt.
Section 1: Understanding Stock Activity Through OI Changes
Here’s what’s moving in key stocks based on price changes and Open Interest (OI) shifts.
| Underlying | Price | Change | Call OI Chg | Put OI Chg | Call Explanation | Put Explanation |
|---|---|---|---|---|---|---|
| MARUTI | 11308.25 | -1.86% | 6443 | 1826 | Short Buildup | Short Buildup |
| BHARTIARTL | 1722.75 | -0.62% | 6214 | 1426 | Short Buildup | Short Buildup |
| M&M | 2647.85 | -0.67% | 3211 | -641 | Short Buildup | Long Unwinding |
| HDFCBANK | 1772.45 | -2.98% | 8461 | 35 | Short Buildup | Short Buildup |
| INFY | 1527.5 | -2.75% | 6693 | 6802 | Short Buildup | Short Buildup |
What Do These Terms Mean?
- Long Buildup: OI rises with price moving favorably—up for calls (bullish) or down for puts (bearish). Traders are buying options, expecting that direction.
- Short Buildup: OI rises, but price moves against buyers—down for calls (bearish) or up for puts (bullish). Suggests option selling.
- Short Covering: OI drops with price rising (for calls) or falling (for puts). Short sellers buy back options, fueling the move.
- Long Unwinding: OI drops with price falling (for calls) or rising (for puts). Long holders exit, signaling doubt.
Quick Take: Widespread Short Buildup (e.g., MARUTI, INFY) with price declines signals strong bearish sentiment—watch for further downside!
Section 2: Spotlight on High-Activity Options
These options show notable trading volume relative to OI, highlighting strikes traders are focusing
| Contract | Volume/OI Ratio | Explanation | VOLUME | OI | IV |
|---|---|---|---|---|---|
| MARUTI 11500 PE 24 Apr 2025 | 4.13 | Short Covering (Bearish) | 4286 | 1039 | 22.48 |
| MARUTI 11500 CE 24 Apr 2025 | 3.79 | Short Buildup (Bearish) | 4246 | 1120 | 21.81 |
| BHARTIARTL 1780 CE 24 Apr 2025 | 3.99 | Short Buildup (Bearish) | 4410 | 1104 | 18.61 |
| BHARTIARTL 1700 PE 24 Apr 2025 | 2.90 | Short Buildup (Bearish) | 4373 | 1510 | 20.53 |
| M&M 2750 CE 24 Apr 2025 | 3.64 | Short Buildup (Bearish) | 6175 | 1696 | 32 |
| M&M 2650 PE 24 Apr 2025 | 3.62 | Long Unwinding (Bullish) | 4641 | 1282 | 32.16 |
| HDFCBANK 1780 PE 24 Apr 2025 | 3.59 | Long Buildup (Bearish) | 5739 | 1597 | 20.88 |
| HDFCBANK 1880 CE 24 Apr 2025 | 3.10 | Short Buildup (Bearish) | 3956 | 1278 | 20 |
| INFY 1520 PE 24 Apr 2025 | 3.53 | Long Buildup (Bearish) | 3556 | 1006 | 33.09 |
| INFY 1560 CE 24 Apr 2025 | 2.95 | Short Buildup (Bearish) | 4275 | 1451 | 31.35 |
How to Understand Volume/OI Ratio
- What It Is: Compares today’s trading volume to existing OI. A higher ratio means more new activity.
- What It Suggests:
- Above 2: Notable interest—traders see this strike as key (e.g., MARUTI’s 4.13 at 11500 PE).
- Above 3: Strong focus, often tied to directional bets (e.g., BHARTIARTL’s 3.99 at 1780 CE).
- Below 1: Quiet—positions are likely being held or closed.
- Why It Matters: High ratios highlight “hot” strikes—potential support or resistance levels.
Final Thoughts
F&O data reveals the market’s mood—OI shifts show bearish buildup, and Volume/OI Ratios (like MARUTI’s 4.13) spotlight key levels. Auto, telecom, banking, and IT are cooling off, with volatility on the rise. Pair these clues with charts to navigate the downturn!
Happy trading—see you next time!
Disclaimer: This content is for educational purposes only, based on data as of 1 PM IST on April 01, 2025. This is not financial advice. Trading involves risks. Always do your own analysis and manage risk before trading.