Disclaimer: This content is for educational purposes only, based on data as of 1 PM IST on March 18, 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 newsletter! Whether you’re new to trading or building your skills, this newsletter breaks down Futures & Options (F&O) data to help you understand market sentiment.
Let’s dive in and make sense of the numbers!
Understanding Stock Activity Through OI Changes
First, let’s look at how traders are positioning themselves in select stocks.
| Underlying | Price | Change | Call OI Chg | Put OI Chg | Call Explanation | Put Explanation |
|---|---|---|---|---|---|---|
| ADANIENT | 2299.2 | 2.07% | -471 | -399 | Short Covering | Short Covering |
| AXISBANK | 1040.45 | 0.60% | 1310 | -510 | Long Buildup | Short Covering |
| BAJFINANCE | 8669.20 | 1.03% | 585 | 733 | Long Buildup | Long Buildup |
| BHARTIARTL | 1269.60 | -0.56% | 164 | -747 | Long Buildup | Short Covering |
| HCLTECH | 1555.2 | 0.67% | -298 | -211 | Short Covering | Short Covering |
| HDFCBANK | 1729.85 | 1.14% | -3972 | 935 | Short Covering | Long Buildup |
| HINDUNILVR | 2205.55 | 1.58% | -2177 | -482 | Short Covering | Short Covering |
| ICICIBANK | 1296.95 | 2.15% | 3314 | 4009 | Long Buildup | Long Buildup |
| INFY | 1597.05 | 0.45% | -4642 | -1061 | Short Covering | Short Covering |
| ITC | 409.4 | 0.33% | -755 | 268 | Short Covering | Long Buildup |
| KOTAKBANK | 2026.50 | 1.68% | 383 | 2312 | Long Buildup | Long Buildup |
| LT | 3251.10 | 2.45% | -2881 | -993 | Short Covering | Short Covering |
| MARUTI | 11705 | 1.32% | -1790 | 1393 | Short Covering | Long Buildup |
| NTPC | 337.2 | 1.64% | -224 | 967 | Short Covering | Long Buildup |
| RELIANCE | 1238.55 | -0.02% | 3530 | -1880 | Long Buildup | Short Covering |
| SBIN | 730.55 | 1.04% | -3022 | -152 | Short Covering | Short Covering |
| SUNPHARMA | 1729.65 | 1.46% | -602 | 1760 | Short Covering | Long Buildup |
| TCS | 3547.25 | 1.33% | -2717 | -762 | Short Covering | Short Covering |
| ULTRACEMCO | 10742 | 1.83% | -1111 | 311 | Short Covering | Long Buildup |
What Do These Terms Mean?
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Long Buildup: OI increases, often accompanied by a price move in the expected direction—up for calls (bullish) or down for puts (bearish). This indicates that traders are actively purchasing options, anticipating movement in that direction.
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Short Buildup: OI increases, but the price moves against the option buyers—down for calls (bearish) or up for puts (bullish). It often means traders are selling (writing) options.
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Short Covering: OI decreases, typically with a price rise (for calls) or fall (for puts). Short sellers are closing positions by buying back options, adding fuel to the price move.
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Long Unwinding: OI decreases, often with a price drop (for calls) or rise (for puts). Long holders are selling their options, signaling fading confidence.
Quick Tip: Widespread Short Covering (e.g., LT, TCS) with price gains often signals a broader rally—watch momentum!
Spotlight on high-activity options
Next, we zoom into specific options with high trading volume compared to their OI. This can highlight strikes where traders are active, often signaling key levels.
| Contract | Volume/OI Ratio | Explanation | VOLUME | OI | IV |
|---|---|---|---|---|---|
| ICICIBANK 1310 CE 27 Mar 2025 | 8.57 | Long Buildup | 9611 | 1121 | 17.67 |
| ICICIBANK 1290 PE 27 Mar 2025 | 7.64 | Long Buildup | 9103 | 1191 | 19.37 |
| TCS 3500 CE 27 Mar 2025 | 6.26 | Long Buildup | 12513 | 2000 | 18.03 |
| HDFCBANK 1720 CE 27 Mar 2025 | 4.82 | Long Buildup | 13922 | 2888 | 16.09 |
| KOTAKBANK 2020 CE 27 Mar 2025 | 4.68 | Long Buildup | 10570 | 2260 | 17.45 |
| AXISBANK 1040 PE 27 Mar 2025 | 4.21 | Long Buildup | 6572 | 1560 | 23.19 |
| HINDUNILVR 2200 CE 27 Mar 2025 | 4.19 | Long Buildup | 5379 | 1285 | 17.3 |
| HDFCBANK 1720 PE 27 Mar 2025 | 3.87 | Long Buildup | 12202 | 3150 | 17.13 |
| MARUTI 11300 PE 27 Mar 2025 | 3.44 | Long Buildup | 3785 | 1100 | 21.63 |
| KOTAKBANK 2040 CE 27 Mar 2025 | 3.36 | Long Buildup | 7292 | 2169 | 17.73 |
| LT 3250 PE 27 Mar 2025 | 3.33 | Long Buildup | 4125 | 1239 | 20.99 |
| TCS 3550 PE 27 Mar 2025 | 3.16 | Long Buildup | 4627 | 1464 | 21.77 |
| LT 3200 CE 27 Mar 2025 | 3.12 | Long Buildup | 9240 | 2958 | 19.34 |
| AXISBANK 1030 PE 27 Mar 2025 | 2.92 | Long Buildup | 6203 | 2127 | 23.57 |
| INFY 1540 PE 27 Mar 2025 | 2.91 | Long Buildup | 4638 | 1595 | 26.77 |
| BAJFINANCE 8100 PE 27 Mar 2025 | 2.88 | Long Buildup | 3730 | 1294 | 31.74 |
| ADANIENT 2300 CE 27 Mar 2025 | 2.86 | Long Buildup | 6139 | 2150 | 36.29 |
| MARUTI 11200 PE 27 Mar 2025 | 2.77 | Long Buildup | 2815 | 1016 | 22.61 |
| RELIANCE 1230 PE 27 Mar 2025 | 2.45 | Long Buildup | 6639 | 2710 | 19.1 |
| INFY 1620 CE 27 Mar 2025 | 2.45 | Long Buildup | 8221 | 3356 | 22.34 |
| HCLTECH 1560 CE 27 Mar 2025 | 2.43 | Long Buildup | 3247 | 1335 | 21.68 |
| RELIANCE 1240 PE 27 Mar 2025 | 2.41 | Long Buildup | 10461 | 4344 | 18.56 |
| ITC 405 PE 27 Mar 2025 | 2.36 | Long Buildup | 2360 | 1002 | 19.37 |
| ITC 410 PE 27 Mar 2025 | 2.13 | Long Buildup | 3174 | 1491 | 18.85 |
| NTPC 335 PE 27 Mar 2025 | 2.10 | Long Buildup | 2913 | 1384 | 20.3 |
| SBIN 730 PE 27 Mar 2025 | 2.09 | Long Buildup | 7281 | 3485 | 20.46 |
| ULTRACEMCO 10700 CE 27 Mar 2025 | 2.09 | Long Buildup | 2665 | 1277 | 20.13 |
| SUNPHARMA 1740 CE 27 Mar 2025 | 2.05 | Long Buildup | 3909 | 1908 | 15.1 |
| BHARTIARTL 1660 PE 27 Mar 2025 | 2.03 | Long Buildup | 2292 | 1129 | 22.25 |
How to understand Volume/OI Ratio
- What It Is: The Volume/OI Ratio compares today’s trading volume to existing OI. A high ratio means lots of new trades relative to open positions.
- What It Suggests:
- Above 2: Notable activity, possibly signaling interest in that strike as support/resistance.
- Above 5: Unusual activity, often tied to big expectations or event
- Low Ratio (Below 1): Less trading than OI, suggesting positions are being held or closed rather than new activity.
Why it matters: High ratios like 8.57 or 7.64 scream action—potential breakout zones!
Final Thoughts
F&O data is your edge—OI shifts reveal trader moves, and high Volume/OI Ratios (like ICICIBANK’s 8.57) flag unusual action. Banking stocks are roaring, IT’s rebounding, and volatility’s brewing. Pair these signals with charts to catch the next big move!
Happy trading—catch you next time!
Disclaimer: This content is for educational purposes only, based on data as of 1 PM IST on March 18, 2025. This is not financial advice. Trading involves risks. Always do your own analysis and manage risk before trading.