Stock Market Bhav Copy क्या है और केसे Analyze करते हैं ?
Hello, Hello friends. I am Vivek Bajaj, founder of elearnmarkets and stockedge. nowadays everyone is saying that data is the new oil this is said by Mukesh Ambani and this is nothing new for people in the share market if you ask the old traders in the share market then they will say that data is our only raw material, that's how we decide if we should trade or not in the old times when people had no data, they used to read those annual reports and make notes out of it That was the only way to accumulate and process the data when I started my career I used a lot of data and did a lot of data analysis then I realized how to do coding in the market, data is so important that in 2006 we launched stockedge what we felt was important for market, we combined all the data and put it in stockedge for you all but before that everyone used to follow something else and that is called Bhao Copy you must be thinking that it is a copy that has the rates of the stock during pit trading, it was used to write the rates of the stocks if you remember the times of newspaper, then 2-3 papers were about shares and trading everything started turning digital then that turned into virtual bhao copies I think everyone should know bhao copy and what I started with analyzing bhao copy I was searching for someone who could explain bhao copy to you in the best manner so I have got one and now I will make you all understand bhao copy and give you the formula to analyze it so today's guest is Pankaj. Pankaj ji how are you? All well. Thank you for coming and decoding the bhao copy, which is a raw material
it's my pleasure. So Pankaj tries to decode bhao copy and tries to come to various conclusions he also works with other data points that others do not decode so this video will be divided into 2 parts, one will be about bhao copy and the other will be about alternate data that is not seen by everyone in the market so we will record back to back 2 videos, it will be fun. Before that please introduce yourself I am in the market for 2 decades, from 2007-2009 I was doing my finals if you remember then in January 2008, reliance launched its first IPO At that time I started taking interest in the market, I was a student so did not have a lot of money so I used to attract stock prices that year only the recession occurred and the market crashed then I got low on energy and after my MBA I started investing money in 2011-2012, I was working as an exchange analyst in a company I started with forex trading, then I did commodities and then equity and F&O before MBA, I also worked in a software company so I have a background of coding so I used to develop trading strategies in software called mega trader 4 I used to make market screeners for forex, commodities, equities, and F&O plus semi-automated, automated algos was also made by me also made indicators for myself and clients then 6-7 years back I saw the bhao copy of NSE, before I had no idea what it is seeing that I realized that it can be used for end analysis in my professional career, I have used excel a lot, I have been a fan of excel so I started analyzing bhao copy in excel I started making models on excel like some models tracked live prices and live charts...but my most favorite is bhao copy for futures we will talk about that model today. Seeing you reminds me of my days when I also started from commodities and then made models. Then in 2015, started with bhao copies
then in 2016 I made stockedge, but if someone makes bhavcopy in excel then I think the market will be in the back of the hand of that person I am really happy that I am recording this with you. So let's start and find out what is bhavcopy and then how you will analyze it through excel I will make you the presenter. Can you see my screen? bring from the home page so that we can start from the beginning because I can say it without a doubt that 99% of people have never visited this page in NSE Right, so this NSE's new website it has various sections, it has market data, and you can see things are available it has daily market reports and also historical reports so I will send you this link so that you can share it with your viewers so today we will talk about futures bhavcopy, it is also for cash, stocks, and F&O so today we will discuss future bhavcopy. It has a section of derivatives, it has equity derivatives, which have a daily report. But today the market was closed so the last date shows 28th May so it will show the reports of 28th may, and below that, it will show you bhavcopy F&O bhavcopy 5 CSV you have to download this file, this is the recent one. Now if you want the old files then you need to go to the archive
for example, if you select this date, then you need to select bhav copy. then you will get this file I have already downloaded the bhav copy of that day. I already have that in my presentation, I will show you just show me the file you downloaded. It is a zip file? yes.. so you will extract?
Yes, I will extract it..so this is a CSV file. So this file opens in excel? yes it simply opens, and I have pasted the same file in this excel so I will explain the headings. This is instrument, which means future index or future of the stock can you show me column A and B? Those are my formulas..okay okay this is how bhavcopy starts. This column has symbols vanity, nifty..
this has the expiry dates, weekly expiry, monthly expiry. Everything is mentioned here the prices are blank for future, if you see the options then you will find it you will get whether call or put will write C for call and P for put.. and this is futures so xx is written so this is typical data. Day high, day low, open and close what we say in the candlestick is this data then we have settings price, contracts...which means volumes this is value, the formula is contracts multiplied by loss size multiplied by closing price, which you will do will show how much value was trailed that day it shows the trailing of that day how to get the loss size? the expense can be acquired from your formula I will calculate the loss size in front of you so the loss size is calculated so it needs to be approximated. Yes you can round up the result is 75..okay okay
the other column is open interest, I find it more reliable than live interest. you said it is a better one, so please elaborate on that you can see everything in Live but not in open interest the second thing is the trade comes through custodians so those trades are only reported in the live market..that's not the point up to 4:30, the custodians report what you will get after 4:30 will reflect the custodians if you see then NSE posts the bhavcopy around 5 o clock so when they get all the data then only it is uploaded in the bhav copy that's why we should see this open interest and not intraday that we usually see sure, fair point. Lastly, it is the time stamp and mine shows 27th May now let's get to the analysis part. I don't open the current interest but the cumulative interest
so when you see the bank nifty, I will make it June. So when you see this bank nifty so here you see the open interest of may series, you can also see the June and July series so open interest is available for all the series so why do I use cumulative open interest? So when the series comes to an end so 4 days before expiry, 6 days before expiry, or 3 days before expiry unwind their current positions, so they will roll over to the next position or unwind to the current what happens is that open interest starts becoming low that is not the true representation of the open interest, due to which series is unwinding that's why I use cumulative open interest so if any participant has rolled over then in may the open interest will be low in June it might decrease, and my analysis won't change correct. even in stockedge we show the cumulative graph. This is good, this must be done. before going to the analysis we have another concept, which is the relation between open interest and price don't get overwhelmed with this chart, I will show the top 2, which is the easiest for the session this is such a topic that we can talk about it for two hours...that's true I will give you this excel sheet, you can share it with your viewers, which they can use for their references so the COI is increasing and it will build up if the longs are greater it was an up trending day so that price relation was seen if the COI is increasing, but the price is falling, it means the shorts were built that day so we can see a down trend the trends start increasing when they start buying it's a moded object, there are rules no exceptions in the 4th point, COI is increasing and the price is also falling when they will exit they will sell the position you will see a down trend. So these are the 4 open interest relations
others are advanced so I will not discuss that now. what people often do is that they refer open interest to the main or the resting day that you will not be able to understand if you see then 27th may is the expiry in this sheet the closing price of 21st May is written I will keep responding to you I have compared 21st May to 23rd May to the prior trading day this shows that market will go up and down if you keep comparing the series then you will realize 20th May, 19th May or post one below other..okay okay. That I have done NIFTY has a long build for PO...you can see the long trend
I use market break pretty often, suppose we have reliance I don't only check for NIFTY 50, but I check for the whole future percent of the market was bullish buyers freeze in upside, the second market supports those buyers so I will divide this session into 2, please share this sheet with your viewers this is the building block of analysis, you can see it from here I check this screen every day when the bhav copy comes so Vivek ji, what is VWAP? this is the transaction that happened the whole day these are the transactions that happened that day..is it clear? this is the normal VWAP that you see in the trading charts if you calculate for day 1 then the series will show the results for me, series VWAP is the most important that we practice this is my bank nifty chart the blue line represents series revamp, which is visible here series VWAP, prior series VWAP..I call this prior series I take out the ratio with respect to NIFTY because this is comparing by NIFTY only, so it will show a flash line towards the end of april, the line was going up in the last few days, it outperformed the nifty that day cumulative open interest was increased by 24% these are simple volumes that you will get in any charts can you show me the chart ones? for clarification, I can change the chart for clarity in India I have not seen such sites, in abroad it has but it asks for high premiums It will start showing the charts one by one I used to take 3-4 hours to check the charts but now it only takes few minutes it means buyers are in profit and sellers are going through a loss this is the currency review but why do I use the prior series my major loss is the entry point, or even the PnL in the NIFTY series, and you won't believe but the prices were nice so let's go to the setup so this is SBI LIVE chart this was the range of the point, which was very bullish the price closed above series VWAP right now they are ready to give a very high price? Why? we have to see if the condition is fulfilling it is rising if you can see now this information is available to me after the day is closed this means that the players have created a position so this should not be followed blindly if the series VWAP is also at this level that was for a long and now I will give an example for short bearish should be visible instead of bullish you can easily see the footprints that are just visible on this day, COI increased by 7% the blue line is below series VWAP if I buy the next day then I also had to needed to go through these die downs you can see it on both these dates can you tell me why? this trade is not valid... I don't have any problem even if the stop goes below 10% let me tell you this in a simple manner..if you see the entry
and there is a sudden spike that is seen in the stop loss now for the exit if the price is not low because you don't know how the market will move my trigger candle will itself be around the series I will add a disclaimer here..if you see this example or if this was my trade as you can see a short build-up from here the stop loss can also go reverse now I will show them examples of both long and short but I will try to keep them in balance this candle has closed in the prior series of the month the price will run in the market but this will happen in the market if I break the rule seeing this trade the stop loss was hit, now not every trade will work it was above the prior series only, which was a good signal the conditions are satisfied if you look at this my set up failed the price went down..okay tell me something the entry was after 4 days I will exit now if you see the scene this is not good, it gives me an indication that my buyers are not in a good position now you will see that I am talking about the futures you get at least 2-3 shares in a day of course, I don't take so much collateral..but I will tell you the issue of liquidity occurs here with bank nifty too I will tell the criteria of bank nifty now you see these 3 and the COI the movement of that day will be missed at any cost now with series VWAP, we will take the trade alerts for the number of stocks will be very less I will show you this manually, I check all the stocks 2% of the series revamp and similar incase someone doesn't want to see the charts something that is easy for you doesn't mean it is easy for others..this is a software in itself they can understand and then take proper action, I agree with that this model can be explored and you people have to do it by yourself somebody familiar with excel can look up this model so you can get this model directly from the site, so friends if you need to build then you can get this excel sheet from the site and download it can we try more examples? we have tried many examples if you have anything conceptual then you can if it is conclusive then we can discuss that if you short options then your profit can increase if your setup triggered then you will not feel like buying around VWAP we will put short you need to have a decent amount of capital..this is true
what I have done here is nifty future, bank nifty future, and stocks the prices here are in respect to the prior days I am quite active on Twitter you can find me there I am excited for the next video where we can talk about other data points that are used in the market