Mr. Vivek Bajaj will explain how to build your tool to analyze a stock operator's movement in the stock market. In this, the 29th session of Learn2Trade, you will learn to track stock market operators because they play a significant part in manipulating prices through open interest. Tracking volume, delivery and open interest are a few ways to spot these activities. 

You will learn to create your tool for stock analysis after watching the entire video.

What You Will Learn

The primary objective that Mr. Bajaj sets out to achieve in this session is to educate viewers on how to analyze stocks effectively. He stresses the importance of combining various factors such as price behaviour, delivery, volume and open interest in the analysis.

To illustrate the process, he chooses Tata Motors as an example. He begins by obtaining historical data, covering the cash market and the first- and second-month derivatives data. Mr. Bajaj guides viewers through downloading and organizing this data systematically. He stresses the importance of maintaining this Excel structure daily, as it becomes a powerful tool for stock analysis.

He introduces the concept of fetching delivery data, an essential component of comprehensive stock analysis. He walks you through how to use the NSE website to retrieve past reports and include this important information in the Excel document. In order to emphasize the rigorous nature of stock analysis, he emphasizes the need to sort data in ascending order once again.

After adding information for the cash market, first- and second-month derivatives, and delivery to the Excel sheet, Mr. Bajaj proceeds to the next phase. He provides instructions to viewers on how to arrange the data, compute cumulative open interest and analyze percentage changes in open interest, delivery, and pricing. He then introduced the 5-day average delivery metric, adding another layer of sophistication and providing a more stable basis for comparison.

The ultimate goal of this thorough data organization is to enable viewers to assess the types of positions that are being developed in a stock. In order to clarify the operators' intentions and the sustainability of a swing position, he wants to provide viewers with the option to determine if these positions are incremental or decremental.

He concludes by urging viewers to replicate this Excel format for five distinct stocks, so transforming the session into a practical and useful manual for stock analysis.

In conclusion, Mr. Vivek Bajaj's 29th session is more than just a lesson; it gives an outline for viewers to build their own personalised stock research tool using Excel. The value of the session is not only in the details but also in the empowerment it provides for each person, highlighting the significance of a well-kept Excel sheet in negotiating the complexity of stock trading.

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Frequently Asked Questions (FAQs)

Q1. What is the significance of tracking stock market operators in the stock market?

It is essential for traders to monitor stock market operators such as hedge funds and institutional investors. These organizations, sometimes called "smart money," have a big influence on price changes through open interest. Understanding their actions helps traders identify potential trends, interpret market manipulations, and efficiently manage risks.

Q2. How does tracking volume, delivery, and open interest help in identifying stock market operators' activities?

It is essential to monitor volume, delivery and open interest to gain insight into the actions of stock market operators. Delivery indicates actual trades, volume represents the level of market activity, and open interest shows the total number of open positions. Together, these components allow traders to understand how operators work, spot any manipulations of the market, and validate the accuracy of price changes.