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TOTAL TRADES:- 29
Tgt achieved:- 16
Sl hit:- 6
Exit:- 5
Trade missed:- 1
Open:- 1
Tgt achieved:- 16
Sl hit:- 6
Exit:- 5
Trade missed:- 1
Open:- 1
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If budget is Good Nifty will go towards 25000 , if budget is not satisfactory Nifty can go towards 21000
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image_2025-02-03_09-15-10.png
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Nifty 23000 to 22800 is support zone and 23445 to 23570 is consolidation zone , Market has to break either side for direction move
In options trading, how to find momentum using liquidity ?
It can be identified by analyzing trading volume, open interest, bid-ask spreads, and implied volatility. Here’s how you can do it:
1. Trading Volume & Open Interest
• High Volume: If an option contract has increasing volume, it indicates rising interest and potential momentum.
• High Open Interest (OI): A steady rise in open interest suggests that traders are adding new positions, confirming a strong trend.
Example: If a call option on a stock has significantly higher volume today than its average daily volume, it may indicate bullish momentum.
2. Bid-Ask Spread
• Tight Spreads: A narrow bid-ask spread indicates high liquidity, meaning there is strong participation in that option contract.
• Wide Spreads: A wide spread suggests low liquidity and can cause slippage, reducing trading efficiency.
Example: An option with a ₹5 bid and ₹5.05 ask has better liquidity than one with a ₹5 bid and ₹5.50 ask.
3. Implied Volatility (IV)
• Increasing IV: If IV is rising along with volume and price movement, it signals strong momentum and higher expected price swings.
• Decreasing IV: If IV drops, it may indicate that momentum is fading.
Example: If a stock is moving up and the IV of its call options is also increasing, it suggests strong bullish momentum.
4. Unusual Options Activity (UOA)
• If there is a sudden spike in volume and OI in out-of-the-money (OTM) options, it may indicate that big players (institutions) are positioning for a major move.
• Tools like OI change %, volume/OI ratio, and option chain heatmaps help detect these opportunities.
5. Delta & Gamma Consideration
• High Delta (near 1 or -1) options move closely with the underlying stock, useful for confirming momentum.
• Gamma spikes indicate an increase in delta sensitivity, which means the option price can move rapidly.
How to Use This in Trading?
1 Check the Option Chain: Look for strike prices with high volume and rising OI.
2 Monitor Bid-Ask Spreads: Avoid illiquid contracts with wide spreads.
3 Watch for Unusual Volume: If volume is 3-5 times the average, it may signal upcoming momentum.
4 Compare IV Changes: Rising IV with price movement confirms a strong trend.
5 Use Screeners: Tools like Chartink, NSE option chain, or platforms like Sensibull help track liquidity-based momentum.
It can be identified by analyzing trading volume, open interest, bid-ask spreads, and implied volatility. Here’s how you can do it:
1. Trading Volume & Open Interest
• High Volume: If an option contract has increasing volume, it indicates rising interest and potential momentum.
• High Open Interest (OI): A steady rise in open interest suggests that traders are adding new positions, confirming a strong trend.
Example: If a call option on a stock has significantly higher volume today than its average daily volume, it may indicate bullish momentum.
2. Bid-Ask Spread
• Tight Spreads: A narrow bid-ask spread indicates high liquidity, meaning there is strong participation in that option contract.
• Wide Spreads: A wide spread suggests low liquidity and can cause slippage, reducing trading efficiency.
Example: An option with a ₹5 bid and ₹5.05 ask has better liquidity than one with a ₹5 bid and ₹5.50 ask.
3. Implied Volatility (IV)
• Increasing IV: If IV is rising along with volume and price movement, it signals strong momentum and higher expected price swings.
• Decreasing IV: If IV drops, it may indicate that momentum is fading.
Example: If a stock is moving up and the IV of its call options is also increasing, it suggests strong bullish momentum.
4. Unusual Options Activity (UOA)
• If there is a sudden spike in volume and OI in out-of-the-money (OTM) options, it may indicate that big players (institutions) are positioning for a major move.
• Tools like OI change %, volume/OI ratio, and option chain heatmaps help detect these opportunities.
5. Delta & Gamma Consideration
• High Delta (near 1 or -1) options move closely with the underlying stock, useful for confirming momentum.
• Gamma spikes indicate an increase in delta sensitivity, which means the option price can move rapidly.
How to Use This in Trading?
1 Check the Option Chain: Look for strike prices with high volume and rising OI.
2 Monitor Bid-Ask Spreads: Avoid illiquid contracts with wide spreads.
3 Watch for Unusual Volume: If volume is 3-5 times the average, it may signal upcoming momentum.
4 Compare IV Changes: Rising IV with price movement confirms a strong trend.
5 Use Screeners: Tools like Chartink, NSE option chain, or platforms like Sensibull help track liquidity-based momentum.
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for finding momentum stock
Use this query in screeners.in
[Latest Close > Previous Close] AND
[Today's Volume > 2 * 20-day Avg Volume] AND
[Delivery Volume % > 20%]
Use this query in screeners.in
[Latest Close > Previous Close] AND
[Today's Volume > 2 * 20-day Avg Volume] AND
[Delivery Volume % > 20%]
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Market Decoder
In options trading, how to find momentum using liquidity ? It can be identified by analyzing trading volume, open interest, bid-ask spreads, and implied volatility. Here’s how you can do it: 1. Trading Volume & Open Interest • High Volume: If an option…
Example Interpretation
• If Nifty 22000 CE shows:
◦ OI +15%
◦ Volume/OI = 3
◦ IV +7%
◦ Tight Bid-Ask Spread
◦ It signals bullish momentum with strong liquidity.
• If Nifty 22000 CE shows:
◦ OI +15%
◦ Volume/OI = 3
◦ IV +7%
◦ Tight Bid-Ask Spread
◦ It signals bullish momentum with strong liquidity.
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What to do when Gap up or Gap down happens?
1) If the gap sustains, follow the trend.
2) If the gap fails, look for a reversal.
1) If the gap sustains, follow the trend.
2) If the gap fails, look for a reversal.
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Intraday resistance worked perfectly well, and 100 points down
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image_2025-02-05_09-09-58.png
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As suggested Nifty took strong support and started moving up ,R1 zone 24050 and 24180 will be resistance
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For intraday 23750 ll remain as resistance ,
Supports are 23715 and 23640
Supports are 23715 and 23640
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