Disclaimer: This content is for educational purposes only, based on data as of 1:15 PM IST on April 4, 2025. This is not financial advice. Trading involves risks. Always do your own analysis and manage risk before trading.
Welcome to today’s F&O Insights! We’re unpacking Futures & Options (F&O) data to help you spot market moves, whether you’re new or leveling up. This edition dives into new expiries launched for 24 April 2025, offering a fresh view on trader sentiment across key stocks.
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 |
|---|---|---|---|---|---|---|
| BAJFINANCE | 8,783.40 | 2.20% | 649 | 1407 | Long Buildup | Long Buildup |
| SUNPHARMA | 1,710.20 | -3.38% | 2710 | 4457 | Short Buildup | Short Buildup |
| AXISBANK | 1,096.05 | 0.57% | 4234 | 1636 | Long Buildup | Long Buildup |
| HDFCBANK | 1,820.20 | 1.41% | 13434 | 3432 | Long Buildup | Long Buildup |
| ONGC | 226.64 | -6.85% | 11007 | 2520 | Short Buildup | Short Buildup |
| RELIANCE | 1,200.40 | -3.87% | 32158 | 7361 | 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: Sharp Short Buildup (e.g., RELIANCE’s 32158 calls) with big drops signals strong bearish sentiment—watch for support!
Section 2: Spotlight on High-Activity Options
These options show significant trading volume relative to OI, highlighting strikes traders are targeting.
| Contract | Volume/OI Ratio | Explanation | VOLUME | OI | IV |
|---|---|---|---|---|---|
| SUNPHARMA 1700 PE 24 Apr 2025 | 9.90 | Short Covering (Bearish) | 13122 | 1325 | 25.7 |
| SUNPHARMA 1700 CE 24 Apr 2025 | 5.91 | Short Buildup (Bearish) | 6080 | 1028 | 21.48 |
| BAJFINANCE 8700 CE 24 Apr 2025 | 7.21 | Short Covering (Bullish) | 13450 | 1866 | 23.64 |
| BAJFINANCE 8800 CE 24 Apr 2025 | 5.55 | Long Buildup (Bullish) | 12851 | 2315 | 23.92 |
| ONGC 230 PE 24 Apr 2025 | 5.88 | Long Buildup (Bearish) | 6769 | 1151 | 33.58 |
| HDFCBANK 1820 PE 24 Apr 2025 | 5.40 | Short Buildup (Bullish) | 12259 | 2270 | 21.25 |
| HDFCBANK 1840 PE 24 Apr 2025 | 5.29 | Short Buildup (Bullish) | 8495 | 1606 | 21.03 |
| HDFCBANK 1820 CE 24 Apr 2025 | 5.12 | Long Buildup (Bullish) | 17386 | 3398 | 16.2 |
| AXISBANK 1090 CE 24 Apr 2025 | 5.00 | Long Buildup (Bullish) | 5150 | 1029 | 20.27 |
| RELIANCE 1210 PE 24 Apr 2025 | 4.88 | Short Covering (Bearish) | 5232 | 1073 | 24.27 |
| RELIANCE 1220 PE 24 Apr 2025 | 4.62 | Long Buildup (Bearish) | 10116 | 2189 | 24.12 |
How to Understand Volume/OI Ratio
- What It Is: Compares today’s trading volume to existing OI. A higher ratio means more new trades.
- What It Suggests:
- Above 2: Notable interest—traders see this strike as key (e.g., RELIANCE’s 4.88 at 1210 PE).
- Above 5: Strong activity, often tied to big expectations (e.g., SUNPHARMA’s 9.90 at 1700 PE).
- Below 1: Quiet—positions are likely being held or closed.
- Why It Matters: High ratios highlight “hot” strikes—potential support or resistance zones.
Final Thoughts
F&O data reveals a split market—OI shifts show bullish finance and bearish pharma/oil, while high Volume/OI Ratios (like SUNPHARMA’s 9.90) spotlight key action. Pair these clues with charts to navigate the mix!
Happy trading—see you next time!
Disclaimer: This content is for educational purposes only, based on data as of 1:15 PM IST on April 4, 2025. This is not financial advice. Trading involves risks. Always do your own analysis and manage risk before trading.