How to Read Options Data of NSE for Intraday Trading?

options data of NSE

It is important to have a clear view of the options data of NSE if you want to trade in indices. As soon as the market opens our Nifty Options Data Signal and VWAP Signal starts collecting that day’s market information. It starts printing the data after 10 am. The signal does it’s work till the market closes. This signal helps you to understand the current situation of the market. We have designed it in such a way that if you only see the signal then you will be able to take your next position in the market. You might get one or more opportunities to enter the market. If you are doing intraday trading it will help you to earn multiple times from the market as well.

FAQ about Options Data of NSE

What is Option Chain in NSE?

It is a list of all the strike prices for put and call options, as well as their premiums, for a specified maturity period. Indices, stocks, commodities, and currency contracts can all be checked.

What is Option Call and Put?

A call offers you the opportunity to acquire an underlying from the seller at a fixed price on a specific date as a buyer. A put provides you the option to sell an underlying to the seller at a predetermined price on a specific date. The options seller is obligated to sell or acquire an underlying from the call or put the buyer in both situations. Only the difference is currently exchanged between the buyer and seller. The market regulator SEBI, on the other hand, is planning to make delivery mandatory in all derivatives over time.

Is it possible to exchange options before they expire?

If a trader believes it will be more profitable to sell an option before it expires, they can do so. This is due to the fact that options have time value, which is the part of an option’s premium that is attributable to the remaining time before the contract expires.

Our Options Data of NSE page using Data Signal and VWAP Signal

Both Data Signal and VWAP Signal are provided in our page of Nifty Open Interest and Bank Nifty Open Interest. So that the intraday traders could understand the options data of NSE a bit clearer. The signals will be helpful for them during market hours. In the following, I have given a brief about the columns that the signal chart has.

Time:

The very first column is the time. If you watch that carefully you will see it is set on a 15min time slot. As we all know the National Stock Exchange opens at 9.15 am. Hence the signal starts gathering the information from the market. After 10 am the signals are presented in the table. From then it works for the rest of the day. But the direction of the index is more clear after 10’O clock in the morning. So I would suggest you watch it after 10 am or 10.30 am onwards.

CE COI:

The very next column is the CE COI which suggests Call side change of open interest.

  • When the CE COI is greater than PE COI, it suggests a sell signal.
  • If the CE COI (Call Change of Open Interest) is 3 times PE COI (Put Change of Open Interest) then it is a strong sell. During the strong sell the difference between call and put amount went to a negative amount.
  • Suppose the market ends with a strong sell. Then doing STBT or Sell Today Buy Tomorrow will be profitable for you.

PE COI:

The next one is the PE COI which stands for Put side change of open interest. Both the data is very important to understand the current situation of the market. If the opposite happened then it is a buy or a strong buy.

  • When the PE COI is greater than CE COI then it suggests a buy signal.
  • As well as if the PE COI is 3times to CE COI then it suggests a strong buy signal. In such cases the difference bnetween call and put is in a highly positive amount.
  • When the market ends with a strong buy then it is most likely to do BTST or Buy Today Sell Tomorrow to gain profit.

COI Diff

It is nothing but the difference between the call side change of open interest and put side change of open interest. According to the difference, the data signal is being detected. If it is on the positive side it is a buy but if it is on the negative side it suggests a sell signal. The signal is shown by the next column is the data signal.

Data Signal

Data signal varies on the difference of the put and call. When the difference is positive, it indicates a buy signal, and the buy signals are presented with green color. However, if the difference is negative, it indicates a sell signal, and the sell signals are presented with red color. Similar happens when the strong buy or strong sell appears in the chart.

The major two indies: There are two indices in the open interest segment are the Nifty Index and the Bank Nifty Index. Now understand the following clearly as it is very important for options data of NSE.

  • If the Nifty gives a strong sell and the Bank Nifty stands at a sell signal then trade in Nifty will be preferable. Because trading in a strong signal is more reliable compared to the weaker one. If the opposite happens meaning Bank Nifty is giving a strong sell it is better to trade through Bank Nifty rather than trade in Nifty.
  • If the signal is a strong sell in any of the two indies then do a short sell by using the stochastic indicator or any other overbought oversold indicator. As the indicator helps you to find out the right time to make a sell position.
  • Otherwise, if any of the indices is giving a strong buy signal then simply buy. Whenever strong buy signals came simply trade through buying on that day. Always try to avoid the signal that is comparatively low.

Use the following link to visit directly to the website to check Data Signal and VWAP Signal

Direct link to visit the Nifty Signals

Watch Data Signal & VWAP Signal Directly

How to Use VWAP Signal for intraday Trading?

VWAP Signal: VWAP is also known as a volume-weighted average price. This provides the average cost of stock that has traded throughout the day, based on both volume and price. That is why traders use it widely.

If the VWAP is greater than Future LTP then undoubtedly it’s a sell signal. Similarly, like the previous one, If the opposite happens means if the Future LTP is more than VWAP then it suggests a buy signal.

Always remember if Data Signal and VWAP Signal both show the same direction. That means to sell on both sides or buy on both sides only then it considers to be the right time to buy or sell. To be more precise it is better to use the Stochastic indicator to see the current situation of the market.

Suppose the VWAP signal shows a sell signal but the Data signal is giving a buy signal then it is most likely to avoid the markets. It is not trending or it is going through a sideways market. Try to wait until the next clear signal comes. As we have set the signal in a 15 min slot so you might be going to get the next signal very soon. But still, if the sideways market continues try to avoid trading rather wait for a better opportunity.

Options Data NSE 1st Example:

In the following, I have presented some examples from the market to make you understand them clearly.

Options Data of NSE

On 9th Feb 2022 market clearly shown that it was the day for buyers. Those persons who watch the signals carefully must have understood that in that day’s (9th Feb 2022) market there was a strong buy till the end of the market. So buying on that day will be profitable to the trader. As I told you previously always trade in that sector that is giving a strong buy or strong sell signal. On 9th Feb 2022 Nifty was the strong one which was giving clear strong signals. Trading in Nifty is the step that trades need to take on that day. So in such circumstances avoiding Bank Nifty is the smart move to take.

Using Oscillators for Entry

As intraday index traders who mostly trade in the intraday segment then put a Stochastic Indicator to the chart and whenever the dip appears buy the index. As the signal is suggesting a strong buy, it is best to buy on that day. It was a great opportunity to do BTST or buy today sell tomorrow on that day as well.

Nifty Chart

The Nifty index went through a bullish market on 9th Feb 2022. There is a possibility that Nifty bank might catch up next day.

It is important to keep an eye on Nifty and Bank Nifty’s VWAP and Data Signal on a daily basis before trading in them. Just remember whenever the Data Signal and the VWAP Signal both are showing strong buy then you will simply buy that day. If you want more information regarding this topic how it works or how you can use to earn sure profit from the market. I would suggest you visit the website as they have presented the information very beautifully.

Options Data of NSE using the Signals by Stock Traders for sectoral performence

If you are not willing to trade through indices. But like to do intraday trading in the stocks. So let me tell you this VWAP Signal and Data Signal will help you as well. As of 9th Feb 2022, the Nifty was on a bullish run. The signal was strong buy most of the time. Go to our sectoral performance page and get the best two sectors of that index and select the best two stocks of that sector. It will be in the most profitable stocks to trade-in. So try to find the best two stocks of Nifty’s best two sectors of that day and buy those stocks. Put the Stochastic indicator and whenever the dip appears in the chart of that share just buy the stock.

On the other hand, if a strong sell comes on any of the indices find the lowest performing sectors under it. From the two lowest sectors select the lowest-performing stocks under that sector and short-sell them using the stochastic indicator. This strategy will help you to earn from a bearish market as well. I would suggest you read the sectoral performance to understand it better.

2nd Example

The market situation on 11th Feb 2022 was quite volatile. As we can see in the following chart, the strong sell signal was not as strong as the previous day’s Buy signal(9th Feb 2022 there was a strong buy on the day). Though VWAP gave a sell signal if we analyze the chart carefully it was quite clear that today’s market was sideways.

Data and VWAP signal

So avoiding such a market is the best suggestion to give you.

Analyzing Chart Using Pivot Point Indicator

A pivot point is a technical analysis indicator or set of computations. That is used to determine the market’s overall trend over multiple time frames. Pivot point presents the average of intraday high and low. Trading above the pivot point the next day is supposed to reflect a continued bullish attitude and trading below it is bearish.

In the following, I have presented the Nifty chart. In which I have also put the Pivot Point indicator (the pivot point is the primary support and resistance). After putting that indicator it is quite clear that the index was trading below the pivot point. It is obvious that the market is going through a bearish phase.

As we can see in the above chart there is a clear sell signal has also appeared in the stochastic indicator. The signal has started falling from the 80 marks. That gives a clear indication of short sell.

Just like the chart our Data signal and VWAP Signals are very clear as we can see in the above image. There was a strong sell in both signals that suggest a clear short sell to the intraday traders. As I have told you before this signal will give you multiple chances to earn from the market.

3rd Example

As we can see on 15th Feb the market was very volatile on the first half but as soon the time passes by the signal started to be more strong. At 12.16 pm the first strong buy signal came. Trading in Nifty after 12.16 pm was the preferable trading timing.

Options data nse

As I have mentioned before when the market is going through a strong buy signal. Whenever the dip appears in the chart buy it. Always remember If the nifty is giving a strong signal trade in Nifty and avoid Bank Nifty and vice versa.

More Intraday Example of using Options Data NSE

We checked on 10th of March 2022, the data signal and VWAP signal in Bank Nifty index has both turned to SELL after 12:45 PM.

Bank Nifty Options Data NSE

So we checked Bank Nifty day high and we short sold a call option that has strike price above day’s high. We sold a 35400 CE of same day expiry. The market started to fall, it is no rocket science. We knew that beforehand. Soon TV channels started flashing the news of the sudden fall.

Fall from Day High

We again made good profits from this call sell which has become zero as it was an expiry day. Check the order screenshots below.

Good profits booked on directional options selling

Example of BTST

In case we get a STRONG BUY signal till day end we can carry the index as BTST or Buy Today Sell Tomorrow. Similarly if we get a STRONG SELL signal till day end we can carry the index as STBT or Sell Today Buy Tomorrow.

As on 9th March 2022, we got a STRONG BUY signal till day end. So we decided to buy the index before market close.

Nifty Data Signal – 09/03/2022

Check the below image as the market was in a STRONG BUY signal, any dip in Stochastics provided a bounce in the market.

Nifty Future Chart – 09/03/2022

Instead of buying the Nifty future or buying a call option we decided to carry a short put option. Check the image below for the actual trades taken.

Order History – 09/03/2022

The next morning we booked good amount of profits by buying back the put option.

Conclusion

As you have gone through the whole post I hope you have a clear view of the Data Signal and VWAP Signal. Because understanding such signals are very important for intraday traders. These 15-min time frame signals give a trader multiple opportunities to earn from the market. It also helps to increase your trading ideas in options data of NSE.

Author: Nandita Hira

Nandita has done her Masters in English and is a new entry in our company. She is learning the basics of the stock market as well as blogging. She is keen to complete her learning phase very fast.

0 0 votes
Article Rating
Subscribe
Notify of
guest

This site uses Akismet to reduce spam. Learn how your comment data is processed.

2 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments
Kumar

Thanks for the informative article !

Can you please advise what is the underlying instrument to be bought when you say ‘Trade in Nifty if there is a Strong Buy signal’. Are you referring to current month Nifty FUTURES or OPTIONS? If options then, how to determine what strike price CE to be bought? Please clarify. Thanks again.

Indrajit Mukherjee

We suggest buying the future or shorting the put. If you want to buy options, I am not an option buyer. Still if you are too keen to buy options, only try deep in the money call options.

2
0
Would love your thoughts, please comment.x
()
x