[Nitin Bhatia]

Guru Ji,

To find speculative trading, you look @ daily trading volume and delivery %. As per your finding whenever there is speculative trading, there is increase in trading volume and decrease in delivery %. As per my understanding there are three ways of doing speculative trading.
1. Open position in Futures.
2. Open position in Options.
3. Open position in intra day.
When you are referring to total traded volume, you are referring to traded volume in nse in cash segment. In cash segment you have to close your position by end of same days otherwise it will be delivery based trading.

So buy looking at total traded volume for a script, how it can be concluded that big player has made speculative position for corresponding expiry.
Kindly clarify this doubt.

Thanks,
Pavan.

[Nitin Bhatia]

To
Pavan.goyal
when big players creates speculative position then *TRADED VALUE(the value of the total no of shares traded) increased but delivery % decreased..at the end of the day if you check delivery % decreased but traded value increased that means big players not interest in cash buying .. thats why delivery% decreased ..
when they creates this type of activity implied volatility increased because they also hedge their position using option..
if they play in intraday with heavy lots then it will not so easy to sqroff the trade same day ,then how can they book profit?? Stock/index should move 5/6% then they can earn 2/3%..
i hope your doubt is clear.
thank you

[Nitin Bhatia]

How many days of data need to be considered to confirm speculative buy/sell. Eg: I am using 3 days of EOD data.

[Nitin Bhatia]

2- 3 days is good enough else you will miss the bus

[Nitin Bhatia]

FII’s are not allowed to take Intraday Position. Therefore, 3rd option is ruled out. Balance 2 options are beautifully explained by Santanu

[Nitin Bhatia]

If speculative positioned are being opened in Futures and Options by bug players, then why total traded value is getting increased. In my view open interest should increase.

Pls help in understanding this.

[Nitin Bhatia]

@ Santanu,

Did you mean to say that whenever big player open position in futures, total traded value also includes the future volume as well ? I’m under impression that total traded value is total trades done on NSE under cash segment.
Pls suggest.

Thanks,
Pavan.

[Nitin Bhatia]

Total traded value include future contracts.

[Nitin Bhatia]

if “Total traded value include future contracts” then why “Total traded value” is less than “Future values”

[Nitin Bhatia]

It depends from which sheet you are checking the Traded Value. Kindly check the traded value in the delivery % link i share in my stock talk videos.

[Nitin Bhatia]

Thanks for clarification. Now it make sense.

Thanks,
Pavan

[Nitin Bhatia]

Sir,
U told that total traded value “include future contracts”.
I Have download the csv file (from https://www.nseindia.com/live_market/dynaContent/live_watch/equities_stock_watch.htm), as per your “open interest excell sheet video”, where “CONTRACTS, VALUE IN LAKH, OPEN INTEREST, CHG_IN_OI” is present.
As per my understanding, the ‘VALUE IN LAKH’- is only for future contract (Number of contracts*ATP*Lot Size*)- Is it true?-
As, total traded value “include future contracts”, then it should always be greater than value of future contract (value displayed in “VALUE IN LAKH” table). But, practically it is not happening, when I substract value of future contract from total traded value, 47 of Nifty Stocks is showing -ve value except Maruti, Infratel & Ibulhsgfin.
Please enlight here.
Lots of thanks for providing such a platform and thanks to them also who is sharing their concept.

[Author]

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