HDIL,Tata Motors and Colgate Darvas Box Analysis

7 thoughts on “HDIL,Tata Motors and Colgate Darvas Box Analysis”

1. Dev J March 18, 2015 3:54 pm

   Sir please have a look to EOD OI data, and please throw some light on 8700 strike of both CE & PE to understand it better. For me its confusing, If I apply above rules then my silly understanding says – both are booking profit.

   http://www.nseindia.com/live_market/dynaContent/live_watch/option_chain/optionKeys.jsp?symbolCode=-10007&symbol=NIFTY&symbol=NIFTY&instrument=OPTIDX&date=-&segmentLink=17&segmentLink=17

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   1. Bramesh Post authorMarch 18, 2015 4:38 pm

      Please read this

      http://www.brameshtechanalysis.com/2013/09/volume-and-open-interest-analysis/

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      1. Dev J March 18, 2015 11:59 pm

         Thanks a lot, initially had thought how I missed this article but later checked dates and realize it was during my initial days I started following you. I remember your marriage around same time.

         Once again thanks. After reading your article now I thing, if Price is rising and OI is also increasing and net change is negative is indicating ppl are buying but seller (specially earlier one) is now taking out their money. Please correct me if I am wrong.

         In today’s case – I interpret that both bulls and bears have booked profit to some extend ahead of Feb outcome while new players have entered to market.

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   2. Bramesh Post authorMarch 18, 2015 4:48 pm

      This scenario is quiet Possible.

      Rgds,
      Bramesh

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2. Dev J March 18, 2015 3:46 pm

   Thank you sir for a quick reply, but I guess I didnt put my query in a correct way. I always apply above rules but get confused when data shows different picture, let me explain you what I want to ask, my query is about OI, mean how to know OI is increasing or decreasing

   Here’s data for 8700CE Strike
   OI…………………Chang in OI……Net Change%
   3,095,450………384,475………..-18.25

   As of my simple understanding
   1. If change in OI is positive and Net % is also positive – its increasing
   2. If Change in OI is negative and net % is also negative – its decreasing

   But what iff
   1. Change in OI is positive and net change % is negative
   2. Change is OI is decreasing and net change % is positive

   Many times I saw it whenever I go to check OI status of a strike. As you can check above data change in OI is positive meaning 384,475 contracts were added to strike but unable to understand why its -18.25% why its not in positive.

   Thanks again for your help.

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3. Dev J March 18, 2015 2:43 pm

   Hello Sir, I am a silent follower of your since past 2 year. I have one query, please help me in understanding – if OI of a strike is increasing and Net Change % is decreasing then how to interpret it. Here is data for 8700CE I copied from NSE, its always confusing.

   For 8700 CE
   OI Chng in OI Volume IV LTP Net Chng Bid Qt Bid Pr Ask Pr Ask Qty

   2,862,150 151,175 301,804 18.27 99.20 -7.05 25 99.20 99.60 125

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   1. Bramesh Post authorMarch 18, 2015 2:46 pm

      BULLISH

       Price rise along with OI rise(New bull positions)

       Price rise with OI decrease(Longs Booking Profit)

      BEARISH

       Price down with OI down(Bear Profit Booking)

       Price down with OI rising(Bearish positions added or weak

      hands unable to exit, stuck with positions)

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