Disclaimer: This content is for educational purposes only, based on data as of 1 PM IST on March 26, 2025. This is not financial advice. Trading involves risks. Always do your own analysis and manage risk before trading.
Welcome to this week’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.
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 |
|---|---|---|---|---|---|---|
| HDFCBANK | 1806.6 | -0.81% | -1672 | -2331 | Long Unwinding | Long Unwinding |
| BHARTIARTL | 1739.05 | 0.54% | -99 | -1664 | Short Covering | Short Covering |
| MARUTI | 11741.9 | -1.06% | -3501 | -1711 | Long Unwinding | Long Unwinding |
| BAJAJFINSV | 1945.5 | 0.00% | -1682 | -990 | Short Covering | Short Covering |
| LT | 3455 | -0.46% | -376 | -1841 | Long Unwinding | Long Unwinding |
| KOTAKBANK | 2133 | -1.71% | -840 | -4548 | Long Unwinding | Long Unwinding |
| BAJFINANCE | 8920 | -1.62% | 286 | -2167 | Short Buildup | Long Unwinding |
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.
- Example: BAJFINANCE’s calls show Short Buildup with a 1.62% drop—call writers expect no rally.
- Short Covering: OI drops with price rising (for calls) or falling (for puts). Short sellers buy back options, fueling the move.
- Example: BHARTIARTL’s call OI fell (-99) with a 0.54% rise—bullish short covering.
- Long Unwinding: OI drops with price falling (for calls) or rising (for puts). Long holders exit, signaling doubt.
- Example: KOTAKBANK’s puts show Long Unwinding (-4548) with a 1.71% drop—fading confidence.
Quick Take: Widespread Long Unwinding (e.g., HDFCBANK, MARUTI) with price drops suggests profit-taking or caution—watch for reversals!
Section 2: Spotlight on High-Activity Options
These options show unusual trading volume relative to OI, hinting at potential action zones.
| Contract | Volume/OI Ratio | Explanation | VOLUME | OI | IV |
|---|---|---|---|---|---|
| HDFCBANK 1820 CE 27 Mar 2025 | 9.63 | Long Buildup | 11075 | 1150 | 20.95 |
| HDFCBANK 1820 PE 27 Mar 2025 | 4.86 | Long Buildup | 6736 | 1386 | 23.73 |
| BHARTIARTL 1760 CE 27 Mar 2025 | 8.93 | Long Buildup | 26061 | 2917 | 28.18 |
| BHARTIARTL 1740 PE 27 Mar 2025 | 7.33 | Long Buildup | 9136 | 1246 | 33.73 |
| MARUTI 11700 PE 27 Mar 2025 | 8.52 | Long Buildup | 17527 | 2056 | 16.93 |
| MARUTI 11800 PE 27 Mar 2025 | 6.82 | Long Buildup | 10794 | 1583 | 17.52 |
| BAJAJFINSV 1980 CE 27 Mar 2025 | 7.74 | Long Buildup | 8270 | 1068 | 32.43 |
| LT 3500 CE 27 Mar 2025 | 7.72 | Long Buildup | 14569 | 1888 | 33.05 |
| LT 3450 PE 27 Mar 2025 | 7.17 | Long Buildup | 8610 | 1201 | 31.72 |
| KOTAKBANK 2140 PE 27 Mar 2025 | 5.77 | Long Buildup | 10828 | 1878 | 20.41 |
| KOTAKBANK 2160 CE 27 Mar 2025 | 5.30 | Long Buildup | 7096 | 1340 | 19.98 |
| BAJFINANCE 9000 PE 27 Mar 2025 | 6.56 | Long Buildup | 7631 | 1163 | 28.74 |
| BAJFINANCE 9000 CE 27 Mar 2025 | 5.09 | Long Buildup | 8243 | 1619 | 28.65 |
How to Understand Volume/OI Ratio
- What It Is: Compares today’s trading volume to existing OI. A high ratio signals fresh trades.
- What It Suggests:
- Above 2: Notable interest—traders see this strike as key.
- Above 5: Unusual activity, hinting at big expectations (e.g., HDFCBANK’s 9.63 at 1820 CE).
- Below 1: Quiet—positions are being held or closed.
- Why It Matters: High ratios like 9.63 or 8.93 flag hot zones—potential support or resistance!
Final Thoughts
F&O data reveals the market’s pulse—OI shifts show trader exits, and high Volume/OI Ratios (like HDFCBANK’s 9.63) highlight fresh bets. Banking’s cooling, telecom’s steady, and volatility’s brewing. Pair these clues with charts to stay sharp!
Happy trading—see you next time!
Disclaimer: This content is for educational purposes only, based on data as of 1 PM IST on March 26, 2025. This is not financial advice. Trading involves risks. Always do your own analysis and manage risk before trading.