Mr. Vivek Bajaj will continue to work on the excel document he has started in the 29th session of Learn2Trade. In order to track a stock operator's intent, he will analyze the stock's price, delivery, and open interest for each trading day in the stock market. It is important for us to track an operator because they play a significant part in manipulating the prices through open interest. Tracking volume, delivery, and open interest are a few ways to spot these activities. He will also use a non-derivative stock as an example to demonstrate the value of using the 52-week high zone when buying a stock.

Learn how to analyze daily stock movement to create your own position in the market by watching this entire 30th episode.

What You Will Learn

The objective is to make daily decisions based on data on buying, selling, uptrends, downtrends, and squaring up positions. He highlights the importance of tracking delivery data and makes a distinction between it and volume in the cash market. He discusses making decisions on long (buying) and short (selling) positions in futures.

He has introduced VWAP (Volume-Weighted Average Price), which is a significant indicator based on highs and lows in the cash market. To understand the number of positions created, he advises including the absolute change in the derivatives data. The emphasis is on examining the intraday movement of the stock, especially at 30-minute intervals.

He then delves into specific dates for Tata Motors, starting with January 4, 2021. The study analyzes pricing changes, delivery changes, open interest changes, and the consequences of such changes. He emphasizes the significance of VWAP and uses conditional formatting in Excel to identify days with notable changes. He explores the idea of exceptions, with a focus on how important it is to recognize odd variations in price, delivery, and open interest in order to do useful research.

The analysis extends to January 18, 2021, illustrating how the stock's dynamics change over time. To make wise trading selections, short covering, long positions, and overall market patterns are analyzed. It is emphasized again how crucial it is to know if the operator (smart money) is long or short in the stock.

The discussion then transitions to January 22, introducing the idea of tracking intraday movements and the relevance of VWAP and daily lows. Drawing on his experiences in the Calcutta Stock Exchange, he provides a layman's explanation of the idea of bulls and bears in the market.

He emphasizes that in order to identify possible uptrends in stocks, it's essential to track them within the 52-week high zone and the 52-week low zone. The analysis shifts to Emami stock, with an emphasis on delivery statistics, VWAP, and 52-week high-low zones. He shows how to analyze important data points visually using conditional formatting.

He offers insights on how to build positions using the 52-week high zone and emphasizes the value of holding off on reentering a stock after a stop loss until confirmation is received. To measure the strength of a stock, the idea of a barometer—a percentage derived from the 52-week high—is presented.

The video finishes with a warning that this extensive Excel analysis is intended for swing trading over a longer time period rather than daily decisions. He underlines that in order to make wise decisions, one must constantly monitor and assess the dynamics of the stock.
In conclusion, this video offers a thorough tutorial on trade analysis using Excel, emphasizing particular stocks, intraday fluctuations, and important data points. He encourages viewers to follow along in order to deepen their comprehension of market dynamics and sharpen their trading techniques.

Frequently Asked Questions (FAQs)

Q1. What will I learn from this session?

You will learn how to make daily decisions in trading based on data, including buying, selling, identifying uptrends and downtrends, and squaring up positions. The session covers the distinction between delivery data and volume in the cash market and provides insights into long (buying) and short (selling) positions in futures.

Q2. What is the importance of tracking intraday movements, VWAP, and daily lows?

Tracking intraday movements, VWAP, and daily lows is crucial for identifying possible uptrends in stocks. The session explains how these indicators contribute to understanding market dynamics and making informed trading decisions.

Q3. Is the Excel analysis suitable for daily decisions or swing trading over a longer time period?

Watch this video to understand why extensive Excel analysis is intended for swing trading over a longer time period rather than daily decisions. Consistent monitoring and assessment of stock dynamics are highlighted for making wise trading decisions.